Small-Cap ETF Showdown: Schwab's SCHA vs. iShares' IJR
The Schwab U.S. Small-Cap ETF (NYSEMKT:SCHA) offers lower costs and broader market coverage, while the iShares Core S&P Small-Cap ETF (NYSEMKT:IJR) provides a more concentrated portfolio with higher liquidity.
Both funds serve as low-cost gateways to the smallest corners of the domestic equity market. While they share similar sector exposures, the primary difference lies in their index strategies.
The Schwab fund casts a wide net across nearly the entire small-cap universe, while the iShares fund focuses on a more selective set of companies that must meet S&P's specific financial viability standards. This distinction affects how each portfolio reacts to market cycles.
Source Fool.com
