BOBP vs SCHX

BOBPFCORE16 Best of Breed Premier Index ETF

SCHXASchwab U.S. Large-Cap ETF

In short

BOBP Most large-cap index funds own the market by size. BOBP owns 50 equal-weighted names picked on return skewness and keeps a cash sleeve by rule, widening it when its trailing-return indicator trips.

SCHX Schwab's no-frills large-cap core: roughly 800 US big names for three basis points, running since 2009. One of the cheapest tickets in a crowded category, and it hugs its index tightly.

Stated mandate

BOBP The fund seeks to track the total return of the CORE16 Best of Breed Premier Index before fees and expenses. The index uses a rules-based selection of U.S. large-cap equities and can shift part of its allocation to cash or cash equivalents to mitigate downside risk.

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

Why people hold it

• BOBP The cash brake is written into the index, not left to a manager: 90% equities and 10% cash normally, shifting to 80/20 when the indicator falls below its threshold, then back.sec.gov
• Equal weighting across the 50 selected stocks gives the largest name the same target slice as the smallest, so no mega-cap sets the agenda by default.sec.gov
• Biweekly rebalancing resets both the stock list and the equity/cash split, so the screen refreshes on a short clock rather than a calendar-quarter one.sec.gov

• SCHX 0.03% a year, well under the typical US large-cap fund's fee. That is the kind of cost floor only the biggest fund shops can hold.
• About 800 stocks tracking the Dow Jones U.S. Large-Cap Total Stock Market Index before fees. No themes, no screens, no manager hunches.schwabassetmanagement.com
• Tracking has been among the tightest in its peer group: the fund delivers its index with very little slippage.
• Live since 2009 and now a multi-billion-dollar fund that trades heavily, so spreads stay thin and the lights are unlikely to go out.

Worth knowing

• BOBP At 0.71%, with no fee waiver in place, it prices above the category median; plain cap-weighted peers in the group go far cheaper, like SCHX at 0.03% and BKLC at 0.00%.
• Young and thinly traded since its 2025 launch, so limit orders and spreads deserve attention in a way they rarely do with the category's giants.
• It is classified non-diversified, and a 50-stock equal-weight book can carry heavier sector and single-name concentration than a broad market index.sec.gov

• SCHX Large caps only, despite the index name. Mid and small caps live in a separate fund, so this is one slice of the market, not all of it.
• Three basis points is cheap, not free: BKLC in the same peer group runs at zero.
• Dividends land quarterly, not monthly, which matters if you're building an income schedule.

Full BOBP profile⁠

Full SCHX profile⁠