5 Best ETFs to Invest In for Retirement

3. Schwab U.S. Small-Cap ETF (NYSE:SCHA)

Schwab U.S. Small-Cap ETF (NYSE:SCHA) is an exchange traded fund that invests at least 90% of net assets in companies on the Dow Jones U.S. Small-Cap Total Stock Market Index. The index is a float-adjusted market capitalization weighted index.  

One of the biggest holdings of the Schwab U.S. Small-Cap ETF (NYSE:SCHA) is Cloudflare, Inc. (NYSE:NET), a firm that owns and runs a cloud platform. At the end of the fourth quarter of 2021, 55 hedge funds in the database of Insider Monkey held stakes worth $1.5 billion in Cloudflare, Inc. (NYSE:NET), up from 50 in the previous quarter worth $958 million.

In its Q4 2021 investor letter, Alger, an asset management firm, highlighted a few stocks and Cloudflare, Inc. (NYSE:NET) was one of them. Here is what the fund said:

“Cloudflare, Inc. (NYSE:NET) has an ambitious mission of helping to build a better internet by providing a broad range of network services to businesses of all sizes to help make their networks more secure, more reliable and less costly. The Cloudflare, Inc. (NYSE:NET) platform has been built from the ground up ona single software stack with a “serverless” network architecture, which has positioned the company to quickly expand its product offerings and network using commodity network hardware. By doing so, the company provides its customers with a flexible, scalable and affordable network platform.

The stock outperformed after the company reported a robust third quarter that exceeded expectations across key metrics. Cloudflare, Inc. (NYSE:NET) also raised its fiscal year 2021 guidance by 3%. The outperformance was driven by strong customer growth, particularly from large customers, as well as the adoption of new products by existing customers. The company added 170 large customers compared to 143 during the second quarter. Cloudflare also stated that the fourth quarter was off to a strong start including a new $1 million annual contract with a large social networking company and an $8 million deal with a large video conferencing service.”