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Mutual funds can be a safe investment option during troubled times.
Schwab mutual funds might hog the limelight in the months ahead as these funds not only diversify your portfolio but also offer a combination of low expenses and low minimum investments.
What is Schwab Mutual Fund?
Founded in 1989, the San Francisco-based Charles Schwab Investment Management is one of the largest individual mutual funds providers worldwide. The primary objective of the company is to offer effective investment solutions.
As of August 2018, the company held $362 billion in assets under management. Over the last three decades, the investment management company has been able to provide sound investment solutions to individual and institutional investors. Jonathan de St. Paer will be replacing the firm’s current CEO Marie Chandoha on Mar 31.
Advantages of Investing in Schwab Mutual Funds
Investing in Schwab mutual funds give you an array of options for building a diversified portfolio. Schwab mutual funds consist of money market funds, index funds, fixed income and asset allocation funds, etc.
Asset allocation funds, in particular, allow you to invest in various asset classes, such as stocks, cash and bonds.
Investing in index funds gets easier with Schwab because you can find low-cost funds that track the performance of a specific index with the help of Schwab Fundamental Index Funds and Schwab market cap index funds. Schwab S&P 500 Index Fund (SWPPX) is one such fund that tracks the S&P 500 index.
Given the equity market volatility over the past few months owing to geopolitical and macroeconomic issues, one might choose to focus on bonds and cash investment at this point rather than solely focusing on stock funds. Schwab mutual funds allow you as much access to the former as the latter.
4 SchwabMutual Funds to Buy
We have picked some Schwab mutual funds that could be good investment options. These funds carry a Zacks Mutual Fund Rank #1 (Strong Buy). Moreover, these funds have encouraging three and five-year returns. Additionally, the minimum initial investment is within $5,000.
We expect these funds to outperform peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance but also on the likely future success of the fund.
The question here is: why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
Schwab MarketTrack Balanced(SWBGX - Free Report) seeks good capital growth and income by maintaining a defined asset allocation which includes stock, bond and cash investments.
This Zacks sector – Allocation Balanced product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
SWBGX has an annual expense ratio of 0.40%, which is below the category average of 0.84%. The fund has three and five-year returns of 5.11% and 3.86%, respectively.
Schwab CA Tax-Free Bond (SWCAX - Free Report) aims for high current income exemption from federal and California personal income tax, which are necessary for capital preservation. The fund mainly invests in investment grade municipal securities.
This Zacks sector – Muni-Bonds product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
SWCAX has an annual expense ratio of 0.49%, which is below the category average of 0.75%. The fund has three and five-year returns of 1.69% and 3.00%, respectively.
Schwab Monthly Income Max Payout (SWLRX - Free Report) seeks to primarily provide current income and secondarily, capital growth. The fund invests in a combination of Laudus funds and Schwab funds that are at par with its target asset allocation.
This Zacks sector – Allocation Balanced product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
SWLRX has an annual expense ratio of 0.00%, which is below the category average of 0.64%. The fund has three and five-year returns of 2.05% and 2.32%, respectively.
Schwab Balanced (SWOBX - Free Report) aims for income and capital growth by investing in a diversified group of other Schwab and/or Laudus funds.
This Zacks sector – Allocation Balanced product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
SWOBX has an annual expense ratio of 0.00%, which is below the category average of 0.84%. The fund has three and five-year returns of 5.18% and 5.03%, respectively.
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4 Schwab Mutual Funds to Buy in 2019
Mutual funds can be a safe investment option during troubled times.
Schwab mutual funds might hog the limelight in the months ahead as these funds not only diversify your portfolio but also offer a combination of low expenses and low minimum investments.
What is Schwab Mutual Fund?
Founded in 1989, the San Francisco-based Charles Schwab Investment Management is one of the largest individual mutual funds providers worldwide. The primary objective of the company is to offer effective investment solutions.
As of August 2018, the company held $362 billion in assets under management. Over the last three decades, the investment management company has been able to provide sound investment solutions to individual and institutional investors. Jonathan de St. Paer will be replacing the firm’s current CEO Marie Chandoha on Mar 31.
Advantages of Investing in Schwab Mutual Funds
Investing in Schwab mutual funds give you an array of options for building a diversified portfolio. Schwab mutual funds consist of money market funds, index funds, fixed income and asset allocation funds, etc.
Asset allocation funds, in particular, allow you to invest in various asset classes, such as stocks, cash and bonds.
Investing in index funds gets easier with Schwab because you can find low-cost funds that track the performance of a specific index with the help of Schwab Fundamental Index Funds and Schwab market cap index funds. Schwab S&P 500 Index Fund (SWPPX) is one such fund that tracks the S&P 500 index.
Given the equity market volatility over the past few months owing to geopolitical and macroeconomic issues, one might choose to focus on bonds and cash investment at this point rather than solely focusing on stock funds. Schwab mutual funds allow you as much access to the former as the latter.
4 Schwab Mutual Funds to Buy
We have picked some Schwab mutual funds that could be good investment options. These funds carry a Zacks Mutual Fund Rank #1 (Strong Buy). Moreover, these funds have encouraging three and five-year returns. Additionally, the minimum initial investment is within $5,000.
We expect these funds to outperform peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance but also on the likely future success of the fund.
The question here is: why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
Schwab MarketTrack Balanced (SWBGX - Free Report) seeks good capital growth and income by maintaining a defined asset allocation which includes stock, bond and cash investments.
This Zacks sector – Allocation Balanced product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
SWBGX has an annual expense ratio of 0.40%, which is below the category average of 0.84%. The fund has three and five-year returns of 5.11% and 3.86%, respectively.
Schwab CA Tax-Free Bond (SWCAX - Free Report) aims for high current income exemption from federal and California personal income tax, which are necessary for capital preservation. The fund mainly invests in investment grade municipal securities.
This Zacks sector – Muni-Bonds product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
SWCAX has an annual expense ratio of 0.49%, which is below the category average of 0.75%. The fund has three and five-year returns of 1.69% and 3.00%, respectively.
Schwab Monthly Income Max Payout (SWLRX - Free Report) seeks to primarily provide current income and secondarily, capital growth. The fund invests in a combination of Laudus funds and Schwab funds that are at par with its target asset allocation.
This Zacks sector – Allocation Balanced product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
SWLRX has an annual expense ratio of 0.00%, which is below the category average of 0.64%. The fund has three and five-year returns of 2.05% and 2.32%, respectively.
Schwab Balanced (SWOBX - Free Report) aims for income and capital growth by investing in a diversified group of other Schwab and/or Laudus funds.
This Zacks sector – Allocation Balanced product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
SWOBX has an annual expense ratio of 0.00%, which is below the category average of 0.84%. The fund has three and five-year returns of 5.18% and 5.03%, respectively.
Want key mutual fund info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>