As a top exchange traded fund (ETF) provider, Schwab’s overall portfolio of index, sector and stock-specific ETFs is a thing to behold. This is a company that’s laser-focused on providing the greatest amount of investor choice in a sector that many already consider to be bloated with offerings.
That said, I think Schwab’s customer service is among the best in this sector. What I like in particular is the ability for individual investors to reach out to one of Schwab’s financial experts for help in building their portfolio or allocating funds. With Schwab, investors have the ability to either be a DIY (do it yourself) investor, or rely in full or in part on a financial advisor to help take one’s portfolio to the next level.
For investors who may be more in the DIY camp, here are three of my top picks among existing Schwab offerings I think could have the most upside in 2026 and beyond. Each of these ETFs are buys in my book for those looking to put capital to work in December.
Large-cap value stocks have driven most of the market’s overall returns in recent years. Thus, I think long-term investors looking to at least match the benchmarks seen in a number of top indices should probably own some exposure to this group.
Among the top ETFs tracking this trend is the Schwab U.S. Large-Cap Value ETF (SCHV). What I like about this particular ETF is the broad exposure this fund provides to a range of sectors (with financials, industrials and health care leading the way with weightings of 23%, 15% and 12%, respectively). Most ETFs in the market these days – even ones that claim to place a focus on value – tend to provide sky-high exposure to just one sector: technology.
Of course, tech stocks will continue to drive most of the price action in the markets. That’s not going to change anytime soon. But being able to gain exposure to some of the best companies in the market with an overall price-earnings ratio around 20-times is incredible. At an expense ratio of just four basis points (0.04%), there’s a lot to like about this ETF’s long-term upside, in my view.
Broad market exposure is what ETF investors are after. Adding diversification across sectors and geographic areas can improve risk-adjusted returns, and achieving that diversification for virtually no cost is what makes these long-term investing vehicles so powerful.
With an expense ratio of just 0.03%, the Schwab U.S. Broad Market ETF (SCHB) is about as inexpensive as they come. But what I find even more compelling when looking at this ETF in particular is the absolute breadth of equity offerings found in this ETF. The SCHB ETF provides investors with exposure to more than 2,500 stocks with a market capitalization weighting for each. So, this is the ETF investors looking for outsized tech exposure will want to consider, given that the fund’s top holdings are the Magnficent 7 stocks most in the financial media cover very closely.
About the Author
