Yahoo Finance 3 Best Schwab Mutual Funds to Buy for Long-Term Growth
The Charles Schwab Corporation, an American multinational financial services company, was originally established as Charles Schwab & Co. in 1971 by Charles R. Schwab. As of Mar 31, 2023, the firm’s assets under management totaled more than $870 billion. Notably, Schwab Asset Management oversees approximately $835.9 billion on a discretionary basis and an additional $34.3 billion on a non-discretionary basis.
Schwab mutual funds are distinguished by their impressively low average expense ratio of 0.20%, and the fact that all their mutual funds are no-load. This means investors can invest without being burdened by high fees. With a low minimum investment requirement of just $100 for equity and bond funds, Schwab mutual funds stand out as a reliable and affordable choice for investments.
From an investment standpoint, we have selected three Schwab mutual funds that are anticipated to safeguard one's portfolio and offer appealing returns. Mutual funds, in general, reduce transaction costs and diversify the portfolio without commission charges mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
These mutual funds, by the way, boast a Zacks Mutual Fund Rank #1 (Strong Buy)or 2 (Buy), have positive three-year and five-year annualized returns, minimum initial investments within $5,000 and carry a low expense ratio.
Schwab MarketTrack Growth Fund SWHGX seeks high capital growth with less volatility than an all-stock portfolio. SWHGX invests in bond, stock and cash investments.
Zifan Tang has been the lead manager of SWHGX since Feb 28, 2012. Most of the fund's holdings were in companies like Schwab S&P 500 Fund (28.1%), Schwab U.S. Aggregate Bond (16%) and Schwab Fundmtl US (11.9%) as of Apr 30, 2023.
SWHGX's 3-year and 5-year returns are 7.2% and 5.9%, respectively. The annual expense ratio is 0.39% compared with the category average of 0.71%. SWHGX has a Zacks Mutual Fund Rank #1.
To see how this fund performed compared to its category and other 1 and 2 Ranked Mutual Funds, please click here.
Schwab MarketTrack All Equity Portfolio Fund SWEGX fund seeks high capital growth through an all-stock portfolio. SWEGX advisors maintain a defined asset allocation to achieve the fund’s goal. The portfolio's target allocation is 100% in stock investments with certain percentages for different segments of the stock market.
Patrick Kwok has been the lead manager of SWEGX since Feb 28, 2019. Most of the fund's holdings were in companies like Schwab S&P 500 Fund (31.5%), Schwab International Inde (13.8%) and Schwab Fundmtl US lg co I (13.4%) as of Apr 30, 2023.
SWEGX's 3-year and 5-year returns are 9.6% and 6.7%, respectively. The annual expense ratio is 0.74% compared with the category average of 0.39%. SWEGX has a Zacks Mutual Fund Rank #1.
Schwab MarketTrack Balanced Portfolio Fund SWBGX seeks capital growth and income. SWBGX advisors maintain a defined asset allocation, which includes bond, stock and cash investments.
Drew Hayes has been the lead manager of SWBGX since Feb 27, 2023. Most of the fund's holdings were in companies like Schwab US Aggregate Bond (35%), Schwab S&P 500 Fund (21%) and Schwab Fundmtl US lg co I (8.9%) as of Apr 30, 2023.
SWBGX's 3-year and 5-year returns are 4.2% and 4.6%, respectively. The annual expense ratio is 0.40% compared with the category average of 0.84%. SWBGX has a Zacks Mutual Fund Rank #2.
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