The reasoning is to keep some investments non-correlated with stocks/bonds. [This correlation matrix site](https://www.etfscreen.com/correlation.php) is useful for investigating this.
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When trading options, liquidity matters, and Schwab ETFs do not have much option liquidity. For such cases, I might use different ETFs to represent the same category. For example:
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- US Small Cap
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- ETFs: SCHA, VB, IWM
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- Futures: /M2K, /RTY
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- US Large Cap
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- ETFs: SCHX, SPLG, VOO, VV
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- Futures: /MES, /ES
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- US Bonds
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- ETFs: BND, SCHO, SCHR, SCHZ, SWAGX
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- Futures: /10Y
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- International Developed
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- ETFs: SCHF, SWISX, VEA
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- Futures: /MFS (MXEA)
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- International Emerging
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- ETFs: SCHE, VWO
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## Holding cash
Banks are going to give you complete shit return for holding your cash. A HYSA will give you better return, but sometimes suffer from bad checking account features. For example, Wealthfront has very bad check-writing abilities.