SCHW (SCHW)
Daily ERM3 factor decomposition: how much of SCHW's variance is explained by the market, its sector, and its subsector — and the ETF notionals that would neutralize each layer.
- Price
- $104.18
- Market cap
- $181.2B
- 23-day vol
- 26.4%
- Sector proxy
- XLF
- Subsector proxy
- IAI
Risk DNA
49% of SCHW's variance is systematic (explainable by market, sector, and subsector factors); the rest is stock-specific.
Market 6.7%Sector 27.2%Subsector 15.0%Stock-specific 51.1%
ETF hedge ratios
Dollars of ETF to short per $1 of SCHW held — executable hedge weights, not regression betas. L1 hedges market only; L3 adds sector and subsector layers.
| Level | Market (SPY) | Sector (XLF) | Subsector (IAI) | Explained risk |
|---|---|---|---|---|
| L1 | $-0.27 | — | — | 6.7% |
| L2 | $0.34 | $-0.94 | — | 34.0% |
| L3 | $0.98 | $-0.34 | $-0.97 | 48.9% |
Data as of July 28, 2026. Updated daily from the ERM3 pipeline.
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