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Posted by
Two Blokes Jun 18 -
Filed in
Stock
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6 views
SCHA offers low costs and broad diversification, but nearly half its top holdings are unprofitable, and the rest trade at high valuations. Current small-cap valuations are historically high, with SCHA's profitable holdings averaging a P/E ratio above 35x and limited earnings growth. Despite underperformance versus the S&P 500 and peers, SCHA does not present an attractive margin of safety for value-focused investors like me.
