Best Schwab Mutual Funds

Schwab is known for their exceptional customer service. Phone support is offered 24 hours a day, as is email and online chat support which operates nonstop.

Schwab offers an impressive selection of no-load funds, featuring more than 7,900 choices without sales loads.

Schwab index funds provide low-cost options for diversifying a portfolio. These funds are ideal for long-term goals such as retirement or college savings plans.

1. S&P 500 Index Fund

The S&P 500 is one of the world’s most-watched market indices and features some of the biggest companies on earth – making it an excellent way to diversify portfolios while mitigating risk.

Index funds are low-cost investments that offer minimal research and trading requirements to manage. They’re ideal for investors who prefer an effortless investing approach.

Index funds and ETFs can be an ideal starting point for new investors looking to break into the stock market but have limited funds on hand. Be wary, however, of leveraged funds that aim to amplify returns by betting against an index; such investments may be very volatile and should only be included as short-term investments in your portfolio.

2. S&P Small Cap Index Fund

This fund tracks a benchmark index that measures investment returns on small-capitalization stocks, providing low expenses to minimize net tracking error and net tracking error. Fund houses charge expense ratio fees when managing funds; so the lower they are, the greater your return will be.

Schwab offers over three decades of indexing experience and expertise. Their index mutual funds and ETFs allow you to diversify your portfolio at low costs with easy investments that don’t lag the market as much during a bear market, though small-cap funds must be held long-term to achieve optimal returns; due to less coverage by analysts.

3. S&P International Index Fund

The fund strives to track the performance of an international market index with low minimum investments, low expense ratios and an array of stocks from across the globe.

Fi is a commission-free mutual fund platform offering direct index funds as well. Through their app, investors can select from over 800 direct funds and invest daily or weekly through SIPs (systematic investment plans). Fi’s commission-free model makes it suitable for newcomers as well as experienced investors alike.

Index funds offer one of the lowest costs and risks on the market today, yet aren’t without risk either. They don’t attempt to outpace it and their returns tend to be relatively predictable over an extended period. Investors looking for higher returns should explore active mutual funds instead.

4. S&P Small Cap Value Index Fund

This fund follows the performance of a small-cap value index and offers high growth potential, offering diversification without too much risk exposure.

The fund invests at least 80% of its total assets in equity securities that compose the S&P SmallCap 600 Value Index, designed to reflect U.S. equities with risk/return characteristics characteristic of small-cap value shares.

Small-cap companies with market capitalizations under $10 billion typically have greater potential for growth, yet often receive less analyst coverage – necessitating investors to conduct more extensive analysis before purchasing these stocks. Although this process may take more time and energy, its returns could prove far greater than expected – available both directly from fund companies or most online brokers.

5. S&P Mid Cap Value Index Fund

The fund seeks investment results that closely mirror the price and yield performance of the S&P Mid Cap 400 Value Index before expenses. At least 80% of its assets must be allocated to securities of this index with weightings reflecting its composition at the most recent close of trading.

Investments by the Fund in securities of medium capitalization companies may expose it to greater risks than investments in larger cap companies, including more abrupt price changes and changes in value than funds invested in larger cap stocks.

Before investing, investors must carefully assess a fund’s investment objectives, risks and charges and expenses before committing money to it. A prospectus provides this and other essential details about it – for a copy please call 1-800-428-6411. 2019 State Street Corporation All rights are reserved.

6. S&P Small Cap Growth Index Fund

The Schwab S&P Small Cap Growth Index Fund (SCHS) offers an excellent way to invest in small-cap stocks. With a low expense ratio, it ranks amongst one of the more cost-effective funds on the market.

Small-cap stocks tend to offer greater potential growth potential than their larger counterparts; however, they also tend to be more volatile.

Schwab’s S&P Small Cap 600 Pure Growth Index Fund tracks the performance of growth stocks listed on the S&P Small Cap 600 index, such as Rambus, Shake Shack and Aerojet Rocketdyne. The fund has an investment portfolio that features companies like these.

Schwab provides clients with efficient, cost-effective index-based investments – including Schwab equity index mutual funds and Schwab ETFs – which offer efficient investments at reasonable costs. Before investing, investors should carefully evaluate the investment objectives, risks, charges and expenses of each fund before making their choice – information can be found in its prospectus.

7. S&P Mid Cap Growth ETF

The S&P Mid Cap Growth ETF gives investors access to mid-cap growth stocks with market capitalization between $2 billion and $10 billion, giving them exposure to an area that has historically outperformed other sectors across markets.

However, remember that growth stocks typically exhibit faster sales and earnings growth rates than other investments, making them more volatile than others. Furthermore, their valuations often make them less appealing in strong bear markets.

This fund boasts a low expense ratio, helping investors reduce costs overall. Prior to making any purchases, always take note of any costs related to any investments and take note that this one may concentrate its assets in just a few issuers.

8. S&P Small Cap Value ETF

ETFs offer an easy and low-cost way to gain exposure to these potentially high-return companies without extensive research on individual firms.

This ETF tracks the S&P 600 Value Index, comprising small-cap U.S. equity companies with “value characteristics.” It invests substantially all of its assets in securities that make up this index and may also invest in derivative products such as futures, options or swap contracts.

This fund, launched on September 9, 2010, has amassed more than $1 billion since inception, charging an affordable 25 bps fee. Some of its top holdings include auto dealership owner Asbury Automotive Group and energy stock Civitas Resources as well as building cable and wire manufacturer Encore Wire; showing strong long-term performance.

9. S&P Mid Cap Growth ETF

This fund tracks the performance of mid-sized U.S. public companies with market capitalizations between $2 billion and $10 billion, often acting as an intermediate between large-cap stocks (which tend to offer less stability but slower growth potential) and small-cap stocks (which offer greater volatility but faster potential growth).

This ETF provides investors with broad diversification at a reasonable fee, as well as offering some quality tilt that may appeal to some investors.

Schwab receives compensation from third-party active semi-transparent ETFs available at Schwab for platform support, technology development, shareholder communications and reporting as well as similar administrative services that it passes on to clients. Schwab does not offer advice or recommendations as to the purchase, sale or holding of these products; for more information please refer to Schwab ETF Disclosure Statement.

10. S&P Small Cap Value ETF

This fund’s 1.10% expense ratio may seem high, but its five-year returns have far outshone those of the Russell 2000 index. Investors will need to carefully consider whether it fits into their portfolio given its concentration on international small cap stocks.

These undervalued stocks often go ignored by analysts, leading them to remain undervalued for longer. This allows investors to capitalize on higher returns. You can learn more about this ETF on Schwab’s product page; investors should note that its investments may be subject to market, political, regulatory and economic risks that may impact share price performance; these risks are detailed in its prospectus. Furthermore, investments made with fixed-income securities pose additional interest rate risk.