(SCHA) Schwab U.S. Small-Cap - Ratings and Ratios

The Schwab U.S. Small-Cap ETF (SCHA) is designed to track the performance of the Dow Jones U.S. Small-Cap Total Stock Market Index, which comprises approximately 1,750 small-cap stocks ranked 751-2500 by market capitalization. This index is a subset of the broader Dow Jones U.S. Total Stock Market Index and is weighted by float-adjusted market capitalization, meaning that the stocks with the largest market capitalization have a greater influence on the indexs performance.

The funds investment strategy involves holding at least 90% of its net assets in the stocks that make up the index, providing investors with broad exposure to the small-cap segment of the U.S. equity market. With an AUM of $16.8 billion, SCHA is one of the larger small-cap ETFs available, offering liquidity and diversification benefits to investors.

From a technical analysis perspective, SCHAs price action suggests a potential bullish trend. The ETF is currently trading above its 20-day simple moving average (SMA20) of $24.32, indicating a short-term uptrend. Additionally, the 50-day simple moving average (SMA50) of $23.24 is below the current price, further supporting the bullish case. However, the 200-day simple moving average (SMA200) of $25.14 is above the current price, indicating that the long-term trend is still uncertain.

Using a combination of technical and fundamental analysis, we can forecast that SCHA may continue to experience a short-term uptrend, driven by the ongoing recovery in the U.S. small-cap market. With the ETFs low average true range (ATR) of 0.41, or 1.66%, indicating relatively stable price action, investors may be able to capitalize on the potential upside while minimizing downside risk. As the U.S. economy continues to grow, small-cap stocks are likely to benefit, driving SCHAs performance higher. In the next 6-12 months, we forecast that SCHA may reach $27.50, representing a 12% increase from current levels.