BBMC vs SCHM

BBMCBJPMorgan BetaBuilders U.S. Mid Cap Equity ETF

SCHMASchwab U.S. Mid-Cap ETF

In short

BBMC J.P. Morgan's no-frills mid-cap sleeve: roughly 500 U.S. mid caps for 0.07% a year, less than half the typical fee in its peer group. No tilts, no theme, just the middle of the market at a discount.

SCHM The forgotten middle of the US market, for three basis points. SCHM has tracked the Dow Jones U.S. Mid-Cap Total Stock Market Index since 2011, holding roughly 500 companies at a fee nobody in the category undercuts.

Stated mandate

BBMC The fund is designed to provide U.S. mid-cap equity exposure through an indexed approach.

SCHM The fund seeks to track, before fees and expenses, the total return of the Dow Jones U.S. Mid-Cap Total Stock Market Index.

Why people hold it

• BBMC 0.07% a year against a 0.15% median across its mid-cap cohort. The fee gap is the whole pitch, and it compounds quietly.
• Roughly 500 holdings tracking the Morningstar US Mid Cap Target Market Exposure Extended Index: the broad middle of the U.S. market, not a stockpicker's slice.
• Does one job and stays in its lane. Plain indexed U.S. mid-cap equity, and one of the tightest mandate matches in its peer group.
• Launched in 2020 and already past the billion-dollar mark, with J.P. Morgan's BetaBuilders index lineup behind it.

• SCHM 0.03% a year, 30 cents per $100. That ties VO for the lowest fee in the mid-cap group and runs well below the category's typical charge.schwabassetmanagement.com
• Pure index plumbing: no stock picking, no tilts. The fund has tracked its benchmark closely, which is the whole job description here.
• Roughly 500 mid-sized US companies, so no single name carries the fund. Broad enough to be a one-ticket middle slice.
• A multi-billion-dollar fund trading since 2011 and among the stronger builds in its peer group, with active daily volume and tight handling.

Worth knowing

• BBMC Thinly traded next to category giants like VO and SCHM, so bid-ask spreads can run wider, especially in fast-moving markets.
• Cheap, not cheapest: VO and SCHM sit at 0.03% for similar broad mid-cap exposure.
• Pure mid cap, so no mega-cap ballast to steady the ride, and income arrives quarterly rather than monthly.

• SCHM Mid-caps swing harder than blue chips. This is full, undampened exposure to that middle tier, with nothing built in to soften rough stretches.
• Every provider draws the mid-cap line differently. The Dow Jones index here won't hold the same names as a Russell or Morningstar mid-cap fund, so overlap with what you own varies.
• Distributions land quarterly, and they're a byproduct of the index, not the point. This is a growth-of-capital vehicle, not an income one.

Full BBMC profile⁠

Full SCHM profile⁠