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Schwab U.S. Broad Market ETF's heavy tech and top-10 stock concentration raises risk concerns amid narrowing mega-cap earnings edge.

Market News
20 Sep 2026
Seeking Alpha
View Source
Neutral
Schwab U.S. Broad Market ETF's heavy tech and top-10 stock concentration raises risk concerns amid narrowing mega-cap earnings edge.

The Schwab U.S. Broad Market ETF (SCHB) currently holds about 2,380 U.S. stocks but has a high concentration risk, with 33.7% of its assets in the top 10 holdings and 36% in the technology sector. This concentration is increasingly hard to justify as the earnings growth gap between mega-cap stocks and mid-cap stocks is expected to narrow through 2027. Mid-cap stocks offer a better risk/reward profile, trading at a lower forward earnings multiple (14.7x) compared to large caps (18.1x), while providing similar growth potential and less concentration risk. Investors may want to consider mid-cap exposure as a more balanced alternative to SCHB's heavy large-cap and tech focus.

The Schwab U.S. Broad Market ETF (SCHB) and its concentration in mega-cap and tech stocks provide context for Pluang's market snapshot. For readers following U.S. stocks, here is Pluang's market data as of Sep 21, 2026 04:11 WIB: out of 150 priced U.S. stocks tradable on Pluang, 52 rose and 97 fell today. Notable movers include IQIYI Inc (IQ) at USD 1.01 with a -8.18% change and a typical hold time of 54 days, Applied Materials, Inc. (AMAT) at USD 444.57 up 6.51% with a 66-day hold time, and QUALCOMM, Inc. (QCOM) at USD 177.72 down 5.82% with an 88-day hold time.

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