Schwab Index Investors

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wbarabas
Posts: 20
Joined: Mon Dec 21, 2020 9:26 am

Schwab Index Investors

Post by wbarabas »

Is SCHA + SCHB the equivalent SWTSX?

I'm wanting to add some exposure to small caps and currently only own SWTSX. I have a good portion of my brokerage account already in SWPPX which is their S&P 500 index.
NancyABQ
Posts: 366
Joined: Thu Aug 18, 2016 3:37 pm

Re: Schwab Index Investors

Post by NancyABQ »

I am no expert on it, but SCHB is pretty close to SWTSX. SCHB tracks "Dow Jones U.S. Broad Stock Market Index" which is the largest 2500 stocks. SWTSX tracks "The Dow Jones U.S. Total Stock Market Index", which I assume contains more than 2500 stocks? But if you check their largest holdings, they are essentially the same.

Personally I treat SCHB, SCHX (Dow Jones U.S. Large-Cap Total Stock Market Index -- largest 750 stocks) and SCHK (Schwab's 1000 index) as equivalent for TLH purposes. I would prefer SCHB since it is the most diversified, but I don't think it matters much and TLH has ended up with me having a mix plus VOO (Vanguard's S&P 500) .

And yes I use SCHA ("Dow Jones U.S. Small-Cap Total Stock Market Index" 750-2500 largest) to augment the above.

Technically I think SCHB = SCHX + SCHA, but I am not sure what proportion of SCHA would be needed to make them equivalent.

I don't worry about being scientific, I just throw some SCHA in my Roth for hopefully extra growth. I don't adjust my SCHA holdings to account for whether I currently have more SCHB, SCHX or SCHX. Ultimately I don't think it matters much.
pkcrafter
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Re: Schwab Index Investors

Post by pkcrafter »

Here is an earlier discussion on this question--

viewtopic.php?t=240937

Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.
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