SCHM ETF: What Is It? A Complete Guide to Returns, Expense Ratio, Holdings, and Alternative ETFs
SCHM, the Schwab U.S. Mid-Cap ETF, tracks the Dow Jones U.S. Mid-Cap index on a market-cap-weighted basis, and its strengths are a low expense ratio and broad diversification. Differences in fees and dividends versus peers IJH and VO are the key selection criteria.
SubscribeWhat Is the Schwab U.S. Mid-Cap ETF?
This is Schwab's core mid-cap ETF, which tracks the Dow Jones U.S. Mid-Cap Total Stock Market Index. It holds a broad range of mid-sized companies, the tier just below large caps by market capitalization, weighted by market cap.
It suits long-term core investors who want low-cost diversification across the mid-cap segment between large-cap and small-cap stocks.
It is a passively managed (index-tracking) ETF run by Schwab.
How Does the Schwab U.S. Mid-Cap ETF Invest?
| Item | Details |
|---|---|
| Tracked Index | Dow Jones U.S. Mid-Cap Total Stock Market Index |
| Management Style | Passive (index tracking) |
| Rebalancing Frequency | Quarterly |
| Dividend Frequency | Quarterly dividends |
| Issuer | Schwab |
| Total Expense Ratio | 0.03% |
The fund holds the index constituents at their market-cap weights, tracking the performance of the U.S. mid-cap market as a whole. It follows an indexing approach that holds a wide range of stocks to reduce single-stock risk and keeps turnover low to maintain tax efficiency.
- Lower fees than the category average
- Broad diversification that reduces single-stock risk
Schwab U.S. Mid-Cap ETF Size and Costs (AUM and Expense Ratio)
Assets under management (AUM) are $14.8B, and the total expense ratio is an annual 0.03%.
Differences in fees and tracked indexes versus IJH and VO, which are in the same mid-cap category, serve as selection criteria.
Schwab U.S. Mid-Cap ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeMid caps sit between large caps and small caps in character, and their performance tends to vary depending on the economic cycle. Recent trends have also shown volatility, influenced by interest rates and earnings seasons.
Fund flows have been fairly steady, driven by demand for low-cost core exposure, and there are phases when attention gathers on the mid-cap category as a diversification alternative to large-cap concentration. The intensity of inflows and outflows can vary with market conditions.
Schwab U.S. Mid-Cap ETF Pros and Cons
Low fees and broad diversification are its strengths, while the volatility typical of mid caps and currency exposure work as drawbacks.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products to the Schwab U.S. Mid-Cap ETF
The IJH, VO, and IWR shown in the table are comparison targets in the same mid-cap category, and they differ in tracked index and fee level. As direct substitutes, there are products that focus on the mid-cap segment, unlike the SCHB family, which offers broader exposure. To extend into small caps you can also consider SCHA, and to widen to the entire U.S. market, SCHB.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 IJH | iShares Core S&P Mid-Cap ETF | $74.20 | +1.2% | $123.1B | 0.05% | 1.22% | +13.8% |
 VO | Vanguard Morningstar Mid-Cap ETF | $82.24 | +0.8% | $107.3B | 0.03% | 1.34% | +12.9% |
 IWR | iShares Russell Mid-Cap ETF | $111.56 | +1.0% | $58.2B | 0.18% | 1.14% | +16.4% |
 MDY | State Street SPDR S&P MIDCAP 400 ETF Trust | $676.84 | +1.2% | $25.9B | 0.23% | 1.04% | +13.6% |
 SPMD | State Street SPDR Portfolio S&P 400TM Mid Cap ETF | $65.01 | +1.2% | $18.6B | 0.03% | 1.29% | +13.7% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| SNDK | Sandisk Corp | 0.07% | $1330.05 | -5.3% | $192.2B | 18.3 | - |
| CIEN | CIENA Corp | 0.02% | $349.45 | -3.8% | $49.6B | 78.0 | - |
| BE | Bloom Energy Corp | 0.01% | $222.30 | -2.5% | $65.7B | 137.7 | - |
| COHR | Coherent Corp | 0.02% | $237.22 | -1.0% | $46.7B | 57.7 | 0.01% |
| LITE | Lumentum Holdings Inc | 0.02% | $919.53 | +0.6% | $83.3B | - | - |
| FLEX | Flex Ltd | 0.01% | $93.07 | +0.0% | $34.4B | 33.6 | - |
Schwab U.S. Mid-Cap ETF Investor Checkpoints
Here are the points to review before investing in SCHM. It offers diversification as a low-cost mid-cap core holding, but the volatility typical of mid caps, fee differences versus peer ETFs, and currency exposure should be checked before buying.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense Ratio | Check the cumulative cost impact over a long holding period | Among the lowest-fee products |
| 📊 Mid-Cap Volatility | Assess the potential drawdown versus large caps | Relatively volatile |
| 🔄 Tracked Index | Check differences in index composition versus peer ETFs | Needs verification |
| 💱 Exchange Rate | Impact on returns converted to Korean won | No currency hedge applied |
The volatility typical of mid caps and currency movements are the main causes of short-term losses. Note that mid caps are relatively more sensitive to the economic cycle than large caps, so drawdowns can be larger during market corrections.
It is a core option suited to long-term investors who want to diversify across the U.S. mid-cap market at low cost. We recommend deciding after comparing fee and tracked-index differences with peer ETFs.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of June 21, 2026.
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