The Schwab U.S. Small-Cap ETF (SCHA) is an exchange-traded fund (ETF) that aims to track the performance of the Dow Jones U.S. Small-Cap Total Stock Market Index. The fund invests in small-cap companies, which are typically defined as those with market capitalizations between $300 million and $2 billion.

One of the main advantages of investing in small-cap companies is the potential for higher returns. Small-cap companies often have more room for growth than larger, more established companies, and they can be less affected by market fluctuations. Additionally, small-cap companies are not as closely followed by analysts, which means that there may be more opportunity for investors to discover undervalued companies.

SCHA is managed by Charles Schwab Investment Management, which is one of the largest ETF providers in the United States. The fund has a low expense ratio of 0.04%, which is lower than the average for small-cap ETFs. This means that investors will keep more of their returns, rather than having them eaten away by high management fees.

The fund has a diversified portfolio of small-cap companies across different sectors, with the largest holdings in technology, healthcare, and consumer discretionary. As of December 2020, the top holdings of the fund include Square Inc, Ollie's Bargain Outlet Holdings Inc, and nVent Electric plc.

SCHA also has a low turnover rate, which means that the fund's portfolio is not frequently turned over. This is beneficial because it means that the fund is not incurring high transaction costs, which can eat into returns. Additionally, it also indicates that the fund's managers have a long-term investment strategy.

In terms of performance, SCHA has had a strong track record since its inception in 2009. The fund has consistently outperformed the small-cap benchmark index and has a high five-year annualized return of 19.39% as of December 2020.

In summary, the Schwab U.S. Small-Cap ETF (SCHA) is a low-cost ETF that aims to provide investors with exposure to small-cap companies. The fund is managed by Charles Schwab Investment Management, has a diversified portfolio of small-cap companies across different sectors, and has a strong performance track record. It is suitable for investors who are looking for higher returns potential and are comfortable with the risks associated with small-cap investments.

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