SWAGX
Schwab US Aggregate Bond Index Fund
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Rate of return from Dec. 2019 to Nov. 2023 is -10%. What can I do from here?
Wanting to invest recent VA backpay - thoughts on how I'm proceeding about doing so
3-Fund Portfolio Comparison: Vanguard, Schwab, Fidelity
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I may have misunderstood your goal. You mentioned "let them do the allocation shift" so I took that to mean that you wanted the allocation to be moved slowly over time. And yes - the TDF would have a higher allocation of fixed income. Re - the manual process that I've used is primarily to move into fixed income slowly over time - but I have liked using target maturity fixed income funds so that I can control the average duration and credit quality. That probably works for me because I trade actively. Re: SWAGX - yeah - I think that's fine depending on your duration needs. It's intermediate duration.
I assume the TDF will have a high allocation of fixed income which is my goal. What would your manual proposal be just shift the majority of the total market to Schwab's bond fund, SWAGX?
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!
I’m in the same timeframe, 2-4 years from retirement. Over the past year I shifted most funds from regular index funds to TDF funds. Still left some in index funds. Importantly, all new money is into bond funds (SWAGX & SWRX) to provide an even safer cushion in case things are wonky in retirement year.
Yeah, definitely bail on that. Schwab's robo advisor takes like 0.3% annually for basically doing what you could do with a simple 3-fund portfolio. Just move it to SWTSX/SWISX/SWAGX or similar low cost index funds and you'll save thousands over 20 years. Same diversification, way lower fees.
Ok, so I'm invested in two treasury type bond funds. A short-term fund and a generic treasury bond fund at Schwab. SWAGX, I believe. The Aggregate bond fund. Will I see the yield go up and the ticker price go down? Is that a result of surging 10-year yields?
SWAGX - aggregated bond fund. You can do vanguard total bond ETF - BND, vanguard total bond fund…. Pick a company. I did Schwab because i have Schwab so it was cheaper
Hi all, I’ve been trying to Construct a portfolio for my Roth IRA as a first time investor and was looking for tips and feedback. I was trying to get exposure on multiple levels this is what my portfolio currently looks like- 50%SWPPX 15% SWAGX 15% AVUV 10% VEA 10%VWO
What you guys think about this? SWTSX 40 SWAGX 20 VXUS 20 SCHD 10 SCHG 10
I will stick to my original strategy. SWTSX 60 SWISX 20 SWAGX 20
Yes I got it from Professor G! Originally I was planning on doing all index funds 60 - SWTSX 20 - SWAGX 20 - SWISX
Hi all, I have a question about my portfolio. It's a simple question, but I'll lay out my situation first. I'm a 39-year-old male, married, and living in the US. I work full-time as a school head custodian, making $43k a year. I'm currently on the state pension plan and just started this job a year ago. They offer a 403b and a 457b. I read up on the plans and decided I would rather open a Roth IRA and invest in an account that I can manage as I learn more about investing over time. They contribute 14% to my pension, and I contribute 10%. Health insurance costs and union dues are currently holding back my current savings contributions from where I want them to be, but I just landed a part-time evening job that pays $200 a month, which should cover that. The money I'm asking about was from a previous 401k that I will admit I wasn't contributing enough to. I'm looking to retire in 27-28 years. I feel like I would like to keep these funds in a moderate-risk portfolio. I have $73k in a rollover IRA spread out over a few different funds, https://imgur.com/a/7kZ3mdb My home is paid off, my vehicles are paid off, we have a camper that I'm probably going to sell because I feel it's a bad investment, and we have $20k in liquid savings in a savings account that I'm trying to convince my wife to move to a HYSA. I just opened a Roth IRA and am investing in a Bogleheads fashion with Schwab. I only opened it about two months ago with $500. Currently, I'm putting $100 a month in and spreading it as follows: 60% SWTSX, 30% SWISX, 10% SWAGX. I plan to put all future raises into this account. I do use a frequent flyer miles rewards credit card to pay essential bills. I pay this off every month. Ultimately, I'm considering closing all other positions in my rollover IRA and going all in on VOO. Does this seem like a good idea to you all? My current dividend income is roughly $2k a year, and it's all being reinvested, but I'm not sure how these other funds will hold their value compared to straight VOO. I also know that putting all of your eggs in one basket is not always the best option. I'm just looking for some advice if anyone is willing to look over this. Thanks.
Hey, I'm 21 and also have a Schwab Roth IRA. At the moment, it's just 70% SWPPX and 30% SWISX. My 401k, however, has a 10% bond allocation (VCOBX because its what my employer offers). I recommend a small bond allocation to increase stability and lower psychological risk during recessions (trust me that matters), but nothing in excess of 10%. The SWPPX/SWISX/SWAGX combo is one of the best three fund portfolios you can make. I would personally do 65% SWPPX, 25% SWISX, and 10% SWAGX since I believe in international diversification (https://www.morganstanley.com/ideas/international-stocks-opportunities-2024 good article on that here). Ultimately though, a three-fund Schwab portfolio with decades to grow will do great with pretty much any non-stupid asset allocation.
Thank you for the response. Lastly, and if you don't mind, I've been doing some browsing today and a part of me wants to do the basic 3 fund portfolio in a separate brokerage account. Not my Roth IRA. SWTSX 60% , SWISX 20% , & SWAGX 20%. Is there anything inheritantly wrong with this approach? I always see the quote, " time in the market beats timing the market." I just hate missed opportunities. Again, this is for 15-20 years from now in case I need available funds that is NOT my Roth IRA. If my questions are vague, I apologize. Still learning. Thoughts? Suggestions? Cheers.
My fiancé’s brokerage account was set up by family close to 15 years ago, and hasn’t really been touched since then. I just went through and did a rebalance of my own accounts and thought I would do both of ours while I was at it. When looking through this, all of these mutual funds have (what seem to me) really high expense ratios. My portfolio has expense ratios of 0.015-0.03%, and these are almost 0.9% in some cases. I can’t help but feel like that cost can’t be justified. The portfolio consists of NAMAX (0.89% ER) HAINX (0.89% ER) JACTX (0.73% ER) NGUAX (0.83% ER) SWAGX (0.04% ER, I understand that this is a bond index and the differences associated with that) I’m tempted to get rid of all of it and put it in something like VTI. Any blatant reason I should avoid that? And secondly, since this is not a tax advantaged account what are the tax implications for a sale of these funds and repurchase into for example an ETF?
> 80% SWPPX and 20% SWISX or SFNNX be a good blend? Or should I add SWAGX in as well Its up to you bonds help smooth out gains or losses in market drops > SWISX/SFNNX SWISX is a classic market cap weighted fund, meaning if a company is more valuable based on their stock cap it will hold more of it. ​ SFNNX is a fundamental index fund, its not based on market cap but something like free cash flow , SFNNX would probably give you a bit more value tilt vs growth
37 years old. Would an allocation of 80% SWPPX and 20% SWISX or SFNNX be a good blend? Or should I add SWAGX in as well. At my age, I haven’t been worried about having bond exposure but figured I would ask. I am also not sure of the advantages and disadvantages between SWISX/SFNNX. Any advice would be appreciated.
I have a Roth IRA invested in the following funds: * SWPPX * SWTSX * SWISX * SWAGX I'm wondering about going for a proper 3-fund portfolio by selling what I have in SWPPX and reallocating to the other funds. Is this advisable? Does it matter either way?
SWTSX, SWISX, SWAGX- keeping it simple!
Hi all, Looking for some general investing advice for retirement on a 68% SWTSX/ 23% SWISX/ 9% SWAGX Roth IRA portfolio before I invest the funds and make it official. I’m a 23 y/o graduated college this past May, living at home $70,000 annual income working in consulting NYC. So, Im really just looking for some input here, does my portfolio make sense and does anyone have suggested changes/different weights? I am curious about the differences between investing in ETFs rather than mutual funds, is it true Mutual Funds are better for IRA and ETF for Individual Investing?
The safer answer would be to use 1 mutual fund (SWAGX? SWTSX?) to grab that leftover money due to the lack of fractional ETFs at Schwab.
Need help, divorcing soon: Hello, so the above says it all. 62 and soon divorcing, will be left with basically nothing due to wife's medical bills. I have a Schwab account. I will be able to invest about $3500 a month starting in Feb. Currently on a contract making very good money, but no 401k available at this time, so where do I start, which index funds should I invest in, looking at SWPPX and SWAGX? Thanks for the help
>SWISX, SWPPX, SWSSX and lastly, SWTSX SWTSX already holds SWPPX and SWSSX, you can drop those last 2 and keep SWTSX, SWAGX, and maybe SWISX (while I do strongly support international diversification, Schwab doesn't have a combined developed + emerging fund to do so, so using VXUS or similar instead of SWISX may be a decent idea). Due partially to the overlap (fully contained within) issue I mention above, and partially based off "winners don't stay winners forever, going based off just the best returns isn't a good idea. See https://www.bogleheads.org/wiki/Three-fund_portfolio
You are not looking at the correct figures. None of those funds is down over the period (except SWAGX 1% cumulative).
Contact Vanguard and tell them you want to transfer a Roth IRA to them. They will tell you what info you need from the current account and handle the transfer. Plan on taking a couple of weeks for everything to be done to the point that you can use the new account. There are no taxes on transferring one Roth IRA to another Roth IRA even if you sell the old holdings to cash with capital gains. That is what you will want to do with SFNNX,SWPPX,SWAGX at Schwab. If you try holding Schwab mut funds at Vanguard there will be large transaction fees to sell them. IIRC something like $75 per trade. Buy the Vanguard funds you want at Vanguard with the transferred cash. There will be no transaction fees for those.
How do I go about moving my ROTH IRA assets into either another brokerage (currently Charles Schwab if I switch I’ll go with vanguard) or switching where my assets are allocated in my portfolio to other assets (currently holding 3 different ones at varying %’s. SFNNX,SWPPX,SWAGX). Is this possible to do and if so how? What kind of losses will I take doing it? Also what’s it called?
his is my son's college account, he is a 9th grader so I have 4 years until I start using the money: 70K total Stocks: NVDA: 8% VRTX: 5% SFM: 6% BRK/B: 5% SWK: 10% INTC: 6% Mutual Funds VDIGX:7% SWPPX: 24% SWAGX: 14% Cash 5.6%CD: 7.17% ​ thanks!
This is my son's college account, he is a 9th grader so I have 4 years until I start using the money: Stocks: * NVDA: 8% * VRTX: 5% * SFM: 6% * BRK/B: 5% * SWK: 10% * INTC: 6% Mutual Funds * VDIGX:7% * SWPPX: 24% * SWAGX: 14% Cash * 5.6%CD: 7.17% ​ thanks!
Isn't SWAGX considered more of an intermediate bond fund since it has a duration of about 6-7 years? When people say short term bonds - what does short term generally mean in years? For example - if OP had been seeking to park cash for 2 years - would a better choice have been a target maturity corporate bond fund if the intent was to take a bit more credit risk than cash?
If you're going to invest in a bond fund, you should be willing to hold it for at least as long as the duration of the underlying bonds in the fund. Looking at [SWAGX fund characteristics](https://www.schwabassetmanagement.com/products/swagx), the effective duration is 6.3 years. You don't state exactly when you purchased SWAGX, but it's possible your purchased during record low interest rates at a time when interests rates are rising. Traditionally, this is a poor time to purchase bonds as bond prices go down as interest rates are rising.
Yep. I do a three way split between SWISX, SWTSX, and SWAGX in an IRA. Check out bogleheads for a better breakdown. The percentage allocation can shift depending on your risk appetite. In a taxable account, I use SNXFX for cash I dont want behind a singular stock.
Why is SCHZ expense ratio .01 lower than SWAGX?
TD Ameritrade is now basically Charles Schwab, so Schwab funds. Below is a solid diverse allocation to work with for the next 20 years: * SWTSX (Total USA) 70% * SWISX (International developed market) 15% * SWLGX (Large Cap growth) 15% In your mid 50s, switch out SWISX & SWLGX with SWLVX. The other option is to replace SWLGX and SWISX with SWAGX in your mid 50s.
SWPPX, SWISTX, and SWAGX ftw.
Rate my Roth! *Large cap total: 49%* 34% SWPPX (Schwab S&P mutual fund) 15% SCHD (US dividend ETF) *International total: 24%* 18% SWISX (Schwab international mutual fund) 6% SCHY (International dividend ETF) *Small-cap total: 14%* 14% SWSSX (Schwab small-cap mutual fund) *Fixed income: 13%* 8% SWAGX (Schwab bond aggregate mutual fund) 5% FALN (High-yield bonds)
There are many types of bond funds beyond an aggregate fund like SWAGX. Arguably the best diversifier for stocks is a fund with long-term, high-quality bonds.
I'm in my late 30s. Looking to add a few funds to an IRA. I'm with Schwab, so I figured I'd start with SWTSX or SWPPX as my main fund. And then maybe SWISX or VXUS. Should I add a bond fund like SWAGX or just stick to 2 for now?
I use SWISX, SWTSX, and SWAGX as a 3 fund portfolio. I’ve been pretty satisfied. Their ETFs have been solid too. SCHG has been pretty good for me for the past few years.
Do I get charged a penalty for buying vanguard index funds through schwab? Should I just open a vanguard account instead? Also, my Roth through schwab is in SWPPX/SWTSX. For my broekrage account I am in on SWISX/SWAGX, should I be in ETFs instead of mutual funds?
If I were in your place I would: - open a Roth IRA (at Fidelity, Schwab, or Vanguard), - transfer in $4k and schedule an automatic $500 deposit each month starting in Sep (contribution limit for 2022 is $6k; next year the limit will increase to $6.5k). - I would research a three fund portfolio (domestic stock, international stock, and domestic bond funds) and decide on my risk tolerance (at 20 I would have a high risk tolerance as I’ll have 40+ years to ride out any dips). - As I am doing this investment in a tax advantaged account I would select mutual funds as I can invest an exact dollar amount (regardless of the current price) and don’t have to worry about their tax inefficiencies when compared to their ETF counterparts. - With my high risk tolerance I may go all in on domestic stock (only invest in one fund for now) or split my investment between domestic and international stock (only two of the three fund portfolio). So if, for example, I opened my account at Charles Schwab I would pick funds such as: - either SWPPX (S&P 500 (US large-cap)) or SWTSX (Total US stock market) for my domestic stock fund - SWISX (large-cap equities from developed international countries) for my international stock fund - and SWAGX (U.S. investment grade, taxable bond market) Then I would either put 100% of my money in my chosen domestic stock fund or split it somewhere between 80/20 to 70/30 domestic/international stock funds. (I have personally invested 100% of my own Roth IRA in SWPPX, but it is only one part of my overall investment and retirement strategy. I hold a target date fund in my 401k and my taxable brokerage account holds Black Rock ETFs ITOT, IXUS, and AGG; I also hold series I savings bonds.)
With Schwab Schwab Total Stock Market Index (SWTSX) Schwab International Index (SWISX) Schwab U.S. Aggregate Bond Index Fund (SWAGX)
My 3 fund portfolio I bought into last summer. Will it ever go up? lol ​ SWAGX -5.58% SWISX-17.95% SWTSX-5.42%
SWAGX, AGG, and BND are all tracking the Barclay's aggregate index, and of the three SWAGX's turnover is the *lowest.* Schwab's ETF SCHZ is lower still. I suspect some shenanigans on the part of Barclay adding & removing specific issues from the index, which then obligates investment funds to buy and sell accordingly.
It is more important to look at the duration of the bond fund you are buying and matching that figure to your holding period. SWAGX has a duration of 6.5 years, so you must be willing to hold this for at least that number of years. Bond funds do not have maturity dates, the funds will buy and sell bonds to basically maintain a constant duration, it is not uncommon for funds to have 40-50% turnover.
>This will be my first bond fund purchase Is there a particular reason you are buying a bond fund? The current rising interest rate and inflation rate environment is negative for bond funds. Look at the performance of SWAGX: YTD -1.71% 1 month -1.74% 3 month -1.03% 1 year -2.71% The value of the shares are going down and the yield is only 1.54%. Subtract the effects of inflation and the real yield is negative (1.54% yield - 7% inflation = -5.46% real interest). You are taking on [interest rate risk](https://www.investopedia.com/terms/i/interestraterisk.asp) of the bond fund share price going down all to get negative (-5.46%) real interest. In the current interest rate and inflation rate environment I recommend 0% in bonds. Even cash is better than bonds. Cash loses to inflation like bonds but unlike bonds there is no interest rate risk with cash. If you insist on buying shares in a bond fund look at the Schwab Treasury Inflation Protected Securities Index Fund (SWRSX) instead of SWAGX. But again, I recommend avoiding bond funds at this time, especially if you are young but even if you are old.
I think the general advice is no day trading with the Roth IRA account. I personally only have three funds in my Roth IRA, as per Bogglehead. SWTSX, SWISX, SWAGX. 80%, 15%, 5%.
Taxable 70% SWTSX (Schwab Total Stock Market Index Fund) 20% SWISX (Schwab International Index Fund) 10% SWAGX (Schwab U.S. Aggregate Bond Index Fund) 401k: 100% FXAIX (Fidelity 500 Index Fund) Real Estate: 2 Rental properties, 1 Primary residence 1% net worth in top 5 Cryptos
I keep a very small amount (<1%) in SWAGX to keep an eye on what it would be like if I was in bonds. So far, I’ve been glad it’s a small amount, because It doesn’t do much. I picked it because I’m a Schwab guy, and fees are very low.
I'm having some trouble verifying what a trade lifecycle (buy/sell) will actually cost on TD Ameritrade vs vanguard to open an account on one. I'm looking here and it looks like TD Ameritrade is lower fees for the same preformance but there maybe something I'm not seeing https://www.schwab.com/schwab-index-funds-etfs Thinking SWTSX, SWISX, SWAGX 65/25/9 and SPTM, SPDW, SPAB, SPTS in 65/25/6/3 precent respectively rest cash (1%).
If you wanted to you can easily do a three fund portfolio with SWTSX, SWISX, and SWAGX or you could look into a index target date fund such as SWYMX: https://www.schwabassetmanagement.com/products/swymx