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In the world of exchange traded fund (ETF) providers, Schwab remains one of the top companies I continue to use within my own retirement planning. I use other providers as well. However, Schwab’s easy-to-use platform and range of excellent options to choose from is one of the key reasons I like this company’s particular low-cost and highly-diversified options.
For investors of all risk tolerance levels and time horizons, I do think there are a few high-quality options investors should consider for their long-term investing needs. The three ETFs I’m going to highlight in this piece are aimed at investors with such time horizons.
Without further ado, let’s dive in!
Schwab U.S. Broad Market ETF (SCHB)
The Schwab U.S. Broad Market ETF (SCHB) is one top ETF that screams “buy me now.” At least, that’s what I’m seeing and hearing when I look at how this fund’s holdings and structure.
This powerhouse tracks the Dow Jones U.S. Broad Stock Market Index, giving you exposure to roughly 2,500 of the largest U.S. companies across all asset sizes. With a range of top-tier large, mid and small-cap names held within this fund, investors still gain plenty of exposure to the mega-cap Magnificent 7 names, but also have significant exposure to small-cap stocks with greater upside.
What I particularly like about SCHB relative to other similar ETFs is this fund’s rock-bottom 0.03% expense ratio. That’s a ratio that’s more than covered by the fund’s dividend yield of approximately 1.1% (better than most major indices), with much of the same earnings and cash flow growth upside over the long-term.
In my view, this Trump-era economy with pro-business policies should fire up markets in early 2026. Thus, obtaining broad U.S. exposure captures every upside from AI boom to industrial resurgence. I also think SCHB’s rock-bottom costs mean more money compounding over decades, which makes this holding perfect for retirement portfolios. Recent 1-year returns around 15-17% and 10-year annualized at 14-15% prove it crushes inflation while diversifying risk across sectors like tech (33%) and financials (14%).
Forget stock-picking headaches – SCHB delivers market-beta magic with tax efficiency and low turnover. For buy-and-hold warriors, it’s the foundation that has the potential to turn $10k into $40k+ over 15 years. Don’t sleep on this market beast.
Schwab U.S. Dividend Equity ETF (SCHD)
Most readers are well aware that the Schwab U.S. Dividend Equity ETF (SCHD) is among my top dividend ETF picks overall. There’s good reason for this.
Tracking the Dow Jones U.S. Dividend 100 Index, SCHD has handpicked 100 quality U.S. firms with 10+ years of dividends. Additionally, the holdings within this ETF are screened on key metrics such as cash flow/debt, ROE, yield, and growth. What that means is that investors can gain exposure to many of the top blue-chip names in the market with an expense ratio that’s around 0.06%. With a divided yield of more than 3.5%, that’s something I think most investors can definitely live with.
I think this fund’s defensive tilt toward dividend-paying stocks with strong balance sheets and the ability to grow in sectors that are less exposed to larger macroeconomic events is a big benefit for long-term investors.
With compounding payouts over time (and a dividend yield that could rise), I think long-term investors should benefit from holding this ETF. That goes double for those who think interest rates will be on the decline in the months and quarters to come (as I am).
Schwab U.S. Small-Cap ETF (SCHA)
While the aforementioned two ETFs to provide some exposure to small-cap stocks, I’m of the view that smaller market capitalization names should outperform over the medium term. As such, I’m a big proponent of ETFs like the Schwab U.S. Small-Cap ETF (SCHA).
This ETF is primed to outperform as a core growth engine of a long-term investor’s portfolio. Tracking the Dow Jones U.S. Small-Cap Total Stock Market Index, the SCHA ETF holds roughly 1,750 nimble companies under $10B market cap. These include some of the fastest-growing names in sectors like technology and biotech, providing investors with the diversified asymmetric upside many are looking for right now.
With a 0.04% expense ratio, more than $20 billion in assets under management, and a yield of around 1.2%, this is an ETF I think provides the sort of cheap thrill ride many investors are after.
I also think that small-caps are undervalued post-2025 rotation, with lower price-earnings ratios than large-caps and huge upside from deregulation under Trump. Those looking for growth and superior long-term returns may want to think about adding exposure to this overlooked sector right now in my view.