Schwab's ultra-low 0.03% expense ratio and $21.8 billion in assets dwarf JPMorgan's newer offering, though both funds delivered similar five-year returns despite different portfolio strategies.
Schwab's ultra-low 0.03% expense ratio and $21.8 billion in assets dwarf JPMorgan's newer offering, though both funds delivered similar five-year returns despite different portfolio strategies.
While JPMorgan BetaBuilders U.S. Small Cap Equity ETF (BBSC -1.86%) provides efficient exposure to small-cap stocks, the Schwab U.S. Small-Cap ETF (SCHA -1.75%) offers much larger assets under management (AUM) and a rock-bottom expense ratio.
Small-cap stocks often offer higher growth potential than their large-cap peers, albeit with greater volatility and more sector-specific weightings. Investors looking for domestic small-cap exposure may compare these offerings from J.P. Morgan and Schwab, which both track U.S. small-cap indexes but differ significantly in cost, liquidity, and portfolio breadth.
Snapshot (cost & size)
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The Schwab fund is notably more affordable for long-term investors with a low expense ratio of 0.03%, compared to the 0.09% charged by the JPMorgan fund. Both ETFs currently offer a matching trailing-12-month dividend yield of 1.1%, providing modest income alongside equity exposure.
Performance & risk comparison
Schwab U.S. Small-Cap ETF provides broad diversification through 1,753 holdings, offering broad reach across the small-cap universe. Its largest sector allocations are Financial Services (17%), Healthcare (17%), and Technology (16%). Top holdings include Bitmine Immersion Technologies (BMNR -5.28%) at 0.35%, Halozyme Therapeutics (HALO +6.57%) at 0.30%, and Wayfair (W -2.97%) at 0.30%. It launched in 2009. Schwab U.S. Small-Cap ETF has paid $0.37 per share over the trailing 12 months, which, on its recent ~$32.79 share price, works out to a 1.1% yield.
JPMorgan BetaBuilders U.S. Small Cap Equity ETF focuses on Technology (20%), Healthcare (18%), and Financial Services (15%). It maintains a more concentrated portfolio of 849 holdings compared to the Schwab fund. Its largest positions include Semtech (SMTC -7.25%) at 0.71%, Corcept Therapeutics (CORT -1.33%) at 0.49%, and Formfactor (FORM -6.54%) at 0.45%. It launched in 2020. JPMorgan BetaBuilders U.S. Small Cap Equity ETF has paid $0.91 per share over the trailing 12 months, which, on its recent ~$85.56 share price, works out to a 1.1% yield.
For more guidance on ETF investing, check out the full guide at this link.
Averytin News Financial update.