SFENX
SCHWAB FUNDAMENTAL EMERGING MARKETS LARGE COMPANY INDEX FUND INSTITUTIONAL SHARES
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I’m looking for what I’ll call feedback, not advice. Advice feels like I’m asking someone to tell me what to do, and that’s not really where I’m at. I mostly just want to type this out, see how it sounds outside my own head, and get some reactions, good, bad, or “have you lost your mind?” I’m 38, married, with a blended family and two kids. The loose goal is to step away from full-time work by 12/31/2035, which also lines up with when our house should be paid off. I’m very aware I’m financially far from that right now, but after a lot of conservative back-of-the-napkin math, and yes, some help from ChatGPT, I genuinely think being financially independent by then, roughly $1.3M across accounts, is doable. This is where I’m hoping for feedback on my investment approach. I’ve spent a lot of time reading, listening to podcasts, going down article and Reddit rabbit holes, and I keep coming back to a variation of the Swensen Model. I’m not under any illusion here. Swensen ran a private institutional endowment and had access to options I’ll never touch in my lifetime. I get that. That said, I really like the bones of the model, especially the diversification patterns, and I wanted something that feels a little more intentional than pure set it and forget it, without drifting into day trading or constantly fiddling with things. A little more context about me, because this probably matters. I’m extremely risk tolerant. Big dips don’t scare me at all, and honestly, red days tend to get me more excited than nervous because I see them as buying opportunities. I also know myself well enough to know that if I’m not involved, I won’t stick with it. I budget every single day, not because I have to, but because I genuinely enjoy it. I’m not looking for a set it and forget it portfolio. What I want is a plan that gives me something to look at and engage with, something I can check in on quarterly, rebalance, and make sure the percentages stay where I want them from a diversification standpoint. Watching the numbers move around doesn’t bother me at all. For reference, the original Swensen Model allocation was roughly 30% domestic equities, 20% REITs, 15% inflation-protected equities, 15% government bonds, 15% developed market international equities, and 5% emerging market international equities. What I’m considering looks more like this: 60% domestic equities, 10% REITs, 5% Treasury inflation-protected securities, 5% government bonds, 15% developed market international equities, and 5% emerging market equities. That 60% domestic allocation would be split evenly between large cap, mid cap, and small cap. Specifically, 20% large cap using SWLGX, 20% mid cap using SWMCX, and 20% small cap using SWSSX. Treasury inflation-protected securities would be held in SWRSX, government bonds in SWAGX, developed international markets in SWISX, and emerging markets in SCHE, mainly due to the lower expense ratio compared to SFENX. Thanks to anyone who made it all the way through my slightly erratic rant. I genuinely appreciate you sticking with it, and I’m looking forward to reading whatever feedback you’re willing to share!
The other bonus with going with Schwab mutual fund equivalents is that you can do automatic investing. Set your dollar amount and when you want to do it and \*POOF\* it just happens. If you want International Developed markets (Ex-US) get SWISX and Developing markets get SFENX. And if you don't already use them for checking you should, they're great! All ATM transaction fees refunded! Set it and forget it my friend, enjoy the ride!
hi everyone, a few weeks into learning about investing in general and would appreciate if anyone had any input or ways I could improve where I started or if it looks pretty good. I’m fortunate to be able to invest or save basically ~3k month for the next year or so (no 401k through work). My plan was to put about $600 into my Roth IRA, $2000 into a MMF at Schwab (SNSXX), and the $400 or so left into a taxable account every month. Below is what I’m invested in for each. I have everything in a Schwab mutual fund as I like being able to invest partial shares. I like the idea of having a somewhat simple portfolio to start but I also want good growth as well as I’m just about to turn 24. I really appreciate any input/advice on this as I’m still a newbie and learning. Thank you. Roth IRA - SWTSX (60%) SWLGX (25%) SWISX (15%) TAXABLE - SWPPX (70%) SWLGX (10%) SWISX (10%) SFENX (10%) MMF - SNSXX (100%)
Index funds. Period. SWTSX, SWGLX, SWISX, SFENX, SCHD. Easy
A 50/50 split between **SWISX** (for stability in developed markets) and **SCHE** (for growth potential in emerging markets with a low expense ratio) is a solid strategy. This approach balances risk, cost, and growth potential. SWISX offers safety with that low 0.06% expense ratio, while SCHE gives you emerging market exposure at a much lower cost (0.11%) than SFENX. This way you can at least test the waters without high fees.
>I'm considering reinvesting everything into either SWPPX or SWTSX so I can setup reoccurring investment each month set I can forget about it and let it grow. You'd be going (further) under weight on ex-US then. You should have a target US to ex-US ratio and work to find a way to accomplish that. Treat all accounts intended for the same purpose as if they were 1. >Is there any other mutual funds that you would recommend to go with SWPPX/SWSTX? SWISX adds developed markets, but not emerging. The only emerging mutual fund I know of from Schwab (SFENX) has a much higher expense ratio.
>Just compare SWPPX vs SFENX and SFNNX over the last 20 years. It's staggering. This is just 'recency bias'...
I have looked at this, and everything I have seen is speculation that doesn't support the allocation if one is in growth mode (i.e., early to mid career/life). I suppose I could understand the allocation if one is in hedge mode, such as closer to retirement. Just compare SWPPX vs SFENX and SFNNX over the last 20 years. It's staggering.
>I am not fully familiar with Schwab’s mutual funds but they may have an in-house fund that replicates VXUS at lower expense ratio. They do not. VXUS is developed + emerging, Schwab seems to only offer funds that separate them out. Schwab's SWISX is developed markets only, but the only Schwab emerging fund I'm familiar with (SFENX) has a far higher ER.