SCHX has the best potential over 10 years among the options provided. Here's the analysis to support this conclusion:
- Consistent Performance: SCHX has shown consistent performance over various time frames, with annualized returns of 24.44% for 1 year, 8.93% for 3 years, 14.72% for 5 years, and 12.61% for 10 years1. This indicates a strong and stable track record.
- Comparison with FNDA: FNDA, while offering potential tax-efficiency and disciplined rebalancing, has an annualized return of 12.64% over 10 years2. This is lower than the returns achieved by SCHX over the same period.
- Comparison with SPSM: SPSM measures the performance of the small-cap segment by fundamental overall company scores, which are created using the RAFI Global Equity Investable Universe2. While SPSM may offer potential for small-cap value stocks, SCHX's focus on large-cap stocks has shown more robust performance.
- Comparison with ESML: ESML aims to track the performance of the S&P SmallCap 600 Index, which includes companies with market capitalizations below $2 billion3. SCHX's focus on large-cap stocks suggests it may have a more stable performance profile.
- Comparison with VBK: VBK offers exposure to small-cap growth stocks, which may have higher growth potential but also higher risk. SCHX's focus on large-cap stocks indicates a potentially more stable investment profile.
- Market Trends: Large-cap stocks have been performing well, with a combined average return of 41% for stocks with a market cap over $1 trillion4. This trend suggests that SCHX, which is also focused on large-cap stocks, could benefit from this favorable market condition.
- Institutional Interest: SCHX has seen significant institutional investment, with large investors such as Cerity Partners LLC and Goldman Sachs Group Inc. increasing their stakes in the ETF1. This institutional interest can be a sign of confidence in the ETF's performance and future potential.
In conclusion, while all the options have their own unique investment strategies, SCHX's consistent performance, focus on large-cap stocks, recent strong performance, and institutional interest suggest it has the strongest potential over the 10-year horizon among the provided options.