The 3 Best Schwab ETFs to Buy in December

As a top exchange traded fund (ETF) provider, Schwab's overall portfolio of index, sector and stock-specific ETFs is a thing to behold. This is a company that's laser-focused on providing the greatest amount of investor choice in a sector that many already consider to be bloated with offerings.

That said, I think Schwab's customer service is among the best in this sector. What I like in particular is the ability for individual investors to reach out to one of Schwab's financial experts for help in building their portfolio or allocating funds. With Schwab, investors have the ability to either be a DIY (do it yourself) investor, or rely in full or in part on a financial advisor to help take one's portfolio to the next level.

For investors who may be more in the DIY camp, here are three of my top picks among existing Schwab offerings I think could have the most upside in 2026 and beyond. Each of these ETFs are buys in my book for those looking to put capital to work in December.

Schwab U.S. Large-Cap Value ETF (SCHV)

Large-cap value stocks have driven most of the market's overall returns in recent years. Thus, I think long-term investors looking to at least match the benchmarks seen in a number of top indices should probably own some exposure to this group.

Among the top ETFs tracking this trend is the Schwab U.S. Large-Cap Value ETF (SCHV). What I like about this particular ETF is the broad exposure this fund provides to a range of sectors (with financials, industrials and health care leading the way with weightings of 23%, 15% and 12%, respectively). Most ETFs in the market these days - even ones that claim to place a focus on value - tend to provide sky-high exposure to just one sector: technology.

Of course, tech stocks will continue to drive most of the price action in the markets. That's not going to change anytime soon. But being able to gain exposure to some of the best companies in the market with an overall price-earnings ratio around 20-times is incredible. At an expense ratio of just four basis points (0.04%), there's a lot to like about this ETF's long-term upside, in my view.

Schwab U.S. Braod Market ETF (SCHB)

Broad market exposure is what ETF investors are after. Adding diversification across sectors and geographic areas can improve risk-adjusted returns, and achieving that diversification for virtually no cost is what makes these long-term investing vehicles so powerful.

With an expense ratio of just 0.03%, the Schwab U.S. Broad Market ETF (SCHB) is about as inexpensive as they come. But what I find even more compelling when looking at this ETF in particular is the absolute breadth of equity offerings found in this ETF. The SCHB ETF provides investors with exposure to more than 2,500 stocks with a market capitalization weighting for each. So, this is the ETF investors looking for outsized tech exposure will want to consider, given that the fund's top holdings are the Magnficent 7 stocks most in the financial media cover very closely.

I am of the view that these companies are very likely going to deliver most of the economic upside the U.S. will produce in the years to come. Having some exposure to these stocks (in addition to the rest of the stock market) is a strategy that makes sense to me.

If I were a young investor starting out, this is the ETF I would choose to start with. This is a fund that should perform very well over the very long-term. At the end of the day, that's what we're all after.

Schwab International Equity ETF (SCHF)

Last, but certainly not least on this list of top Schwab ETFs to consider right now is the Schwab International Equity ETF (SCHB).

The companies SCHB provides exposure to companies that trade outside of the U.S. market, helping investors who have ample exposure to domestic securities balance out some of that over-indexing within their portfolio.

To start this year, it really did look to me like international stocks were set to outperform their U.S. counterparts for the first time in many years. Key factors driving that narrative at the time included tariff-related cost increases for the U.S. economy and an overall relative improvement in other global economies (particularly in Europe) relative to the U.S. which may see slowing growth as a result of these policies.

We haven't yet seen the sort of inflationary impact of tariffs bleed through to consumer-facing companies just yet. But there are some other domestic headwinds which appear to be propping up concerns among some investors, including a weakening labor market (which may spill into additional rate cuts in the coming FOMC meetings).

I think owning a healthy amount of international stocks is a long-term strategy which can benefit most investors. Given where valuations are today, I think SCHF could be among the most pertinent picks for investors who are becoming slightly concerned with how highly valued U.S. stocks are at this point in the cycle.

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