SCHA — Schwab US Small-Cap ETF
Charles Schwab · Expense Ratio: 0.04% · US Small/Mid Cap · 8bp below the US Small/Mid Cap category average of 0.12%
Key Facts
| Ticker | SCHA |
| Full Name | Schwab US Small-Cap ETF |
| Provider | Charles Schwab |
| Expense Ratio | 0.04% |
| Category | US Small/Mid Cap |
| Assets Under Management | $18B |
| Inception Year | 2009 (17 years ago) |
| Number of Holdings | 1,700 |
| Dividend Yield | ~1.3% (low) |
| Top Holdings | SMCI, DECK, CSL |
What Is SCHA?
SCHA, managed by Charles Schwab, launched in 2009, is a well-established ETF with adequate liquidity for most investors in the US Small/Mid Cap category. US small-cap and mid-cap stock ETF covering smaller US companies with higher growth potential. With $18B in assets under management, it has adequate trading volume for most individual investors.
SCHA in a FIRE Portfolio
This fund serves as a satellite position — adding targeted exposure to us small/mid cap within a FIRE portfolio built around a broad-market core.
Satellite holdings typically make up 5-20% of your portfolio. Small-cap stocks have historically outperformed large-caps over long periods — a 10-20% tilt can boost long-term returns for FIRE investors with 30+ year horizons.
Cost Analysis: How SCHA's 0.04% Fee Affects Your FIRE Timeline
At 0.04%, SCHA is in the ultra-low-cost tier. On a $100,000 investment, you pay just $40/year in fees. Over 30 years, the fee drag is approximately less than 1% of your total returns — essentially negligible for FIRE planning. This is about as close to "free" as ETFs get.
Dividend Income Potential
With a low dividend yield of approximately 1.3%, here's what SCHA could generate in annual income at different portfolio sizes:
| Portfolio Value | Annual Dividend Income | Monthly Income |
|---|---|---|
| $100,000 | $1,300/year | $108/month |
| $250,000 | $3,250/year | $271/month |
| $500,000 | $6,500/year | $542/month |
| $1,000,000 | $13,000/year | $1,083/month |
Frequently Asked Questions About SCHA
What is the expense ratio for SCHA?
SCHA has an expense ratio of 0.04%. This is ultra-low-cost — on a $100K portfolio, annual fees are $40. 8bp below the us small/mid cap category average of 0.12%.
Is SCHA good for a FIRE portfolio?
This fund serves as a satellite position — adding targeted exposure to us small/mid cap within a FIRE portfolio built around a broad-market core. Its 0.04% expense ratio is ultra-low-cost for the US Small/Mid Cap category.
How does the 0.04% fee affect long-term returns?
At 0.04%, the fee impact is minimal — less than $50/year on a $100K portfolio. Over a 30-year FIRE timeline, the cumulative fee drag is under 1% of total returns, making SCHA an extremely efficient choice.
Is SCHA liquid enough for my portfolio?
SCHA manages $18B in assets — a well-established ETF with adequate liquidity for most investors. For most individual FIRE investors making regular contributions, liquidity is sufficient. If you're investing large lump sums ($100K+), use limit orders to control your execution price.
Similar ETFs in US Small/Mid Cap
- VB — Vanguard Small-Cap ETF (0.05% · Satellite Position)
- IJR — iShares Core S&P Small-Cap ETF (0.06% · Satellite Position)
- IWM — iShares Russell 2000 ETF (0.19% · Satellite Position)
- AVUV — Avantis US Small Cap Value ETF (0.25% · Satellite Position)
- VIOV — Vanguard S&P Small-Cap 600 Value ETF (0.15% · Satellite Position)
- SLYV — SPDR S&P 600 Small Cap Value ETF (0.15% · Satellite Position)
- SPSM — SPDR Portfolio S&P 600 Small Cap ETF (0.05% · Satellite Position)
- IWO — iShares Russell 2000 Growth ETF (0.24% · Satellite Position)
- VTWO — Vanguard Russell 2000 ETF (0.1% · Satellite Position)