SWISX
SCHWAB INTERNATIONAL INDEX FUND SELECT SHARES
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Would a combination of say, 80/20 SWTSX/SWISX be a good idea for my Roth? Should I also include ab emerging market fund since that isn’t included in SWISX? If so, which one? Is SCHB an emerging market fund?
Rate of return from Dec. 2019 to Nov. 2023 is -10%. What can I do from here?
International stock funds - index vs active. Decisions, decisions
3-Fund Portfolio Comparison: Vanguard, Schwab, Fidelity
If Schwab goes belly up, what happens to investments in their mutual funds?
New 2 investing. Schwab Traditional IRA. In 2021 I contributed 6k and will do again this year. It’s down 10%, how should I invest/change my options/investments? Any advice?
Thoughts on 401k allocation? Should I choose Roth or traditional?
My investing strategy during these scary times -- Is it really this easy?
How do you decide when to sell a position? Am I a fool for never taking profits?
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Hello, I am very new to investing, I had my first financial advisor meeting with Charles Schwab yesterday and learned a lot. I have funds in an IRA rollover account from ESOP stock that I sold. Yesterday I invested 21% in money market to have some liquid in case I need to pull from it. Invested 15% in a CD at 4.3% And was planning on investing 54% in SWPPX (Schwab S&P 500) and 7% in SWISX (Schwab International). I see that the S&P is at an all time high today. I wasn't sure if I should invest today or hold off for a potential drop when the tariff pause ends July 8-9th? Or invest half (27%) today and save the other half in case it drops? Thanks in advance for any advice? (45 y/o, income SSDI, horizon 15 years, no major debt except car loan $16,800, housing with family, one child, single mom).
SPY. VOO. And some International Index Fund like SWISX.
Thanks for your info. I looked into VXUS and it's similar to SCHG in holdings but about 1/2 the tech stock percentage, hence a bit lower return over the last 5 or so years. I may stick w/ SCHG and maybe transition towards VXUS if tech starts to decline. VXUS is VERY similar in performance to the MF SWISX i currently hold. Slightly lower expense ratio and a hair more return over the last 10 years. I don't particularly like Morningstar's rating on it though. Similar holdings except VXUS holds Taiwan Semiconductor Manufacturing Co Ltd and SWISX doesn't. I am going to continue to look for alternative Foreign Large Blend ETFs. Dave
I'm looking more towards growth and value funds. Also want to add about 20% international into it. In other accounts I already hold SCHG and SCHD (For a little bit of diversification). Im Looking to get out of SWISX for a comparable international ETF SWPPX/SWLGX/FXAIX/FSPGX maybe for more SCHG or a decent large/mid cap value index fund. Open for any recommendations on ETFs to research. I've researched many already but any more input I can get it welcomed and appreciated. Dave
I didn’t like the SIP either, but don’t have any issues with Schwab. Have them convert to a normal brokerage account (they will close the SIP account and transfer to a new one) and just put it into SCHB+SCHF or SWTSX+SWISX.
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.
Mine are for retirement as well. But it's cash in my ROTH as of this evening so having it sit as cash doesn't give me much return possibility. I hold ETFS as well as FXAIX, FSPGX, [SWISX](https://client.schwab.com/SymbolRouting.aspx?symbol=SWISX), [SWPPX](https://client.schwab.com/SymbolRouting.aspx?symbol=SWPPX) and [SWLGX](https://client.schwab.com/SymbolRouting.aspx?symbol=SWLGX) depending on where the retirement accounts are held.
I do agree with you on the transition of the reserve currency creating massive headwinds on the world and its T notes. But I’m under the assumption that the majority of users on here don’t have the privilege of waiting for a long list of crises to end before getting back in to growth mode. Like I said, if you’re investing for retirement, you need to take a leap somewhere and chase that upside. Me personally, I’m very much divesting from the USD. No more VOO, no more QQQ, but a whole lot of VXUS and SWISX.
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
I feel like I could be doing better but for now here's what I'm doing: 403B: VFTNX VIGIX VIllX VIVIX Roth Contributory: SWPPX SWSSX SWISX Pension: Teachers Retirement 60% of the highest 2-year salary at 30 years
Idk look at 1. Vanguard Total Stock Market ETF (VTI) Mutual Fund Equivalent: Vanguard Total Stock Market Index Fund (VTSAX) 2. Vanguard Total International Stock ETF (VXUS) Mutual Fund Equivalent: Vanguard Total International Stock Index Fund (VTIAX) 3. Vanguard Total World Stock ETF (VT) Mutual Fund Equivalent: Vanguard Total World Stock Index Fund (VTWAX) 4. Schwab U.S. Broad Market ETF (SCHB) Mutual Fund Equivalent: Schwab Total Stock Market Index Fund (SWTSX) 5. Schwab International Equity ETF (SCHF) Mutual Fund Equivalent: Schwab International Index Fund (SWISX) --- Expense Ratios: ETFs often have lower expense ratios than their mutual fund equivalents, especially compared to the mutual fund’s investor share class. The Schwab ones have significant differences (over 1% in the returns)
So you would suggest to allocate 100% of the funds to the brokerage account and then choose like SWISX and SWTSX from there?
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 have SWTSX 70% and SWISX 30% in my Roth. I’ll probably keep that ratio until I retire in 30 years.
ETFs like SCHH & VNQ generally don’t matter, but SWTSX, VTSAX, SWISX & VTIAX are mutual funds and mutual funds typically have load fees when bought through a different brokerage than the fund provider.
Depends on your risk tolerance and goals!SWTSX/VTSAX is popular for US exposure, while SCHH/VNQ is real estate-focused.SWISX/VTIAX offers international diversification.
75-80% SWTSX + 20-25% SWISX would be my vote
I hear you. I am looking at 10 year trends and inception. SWPPX has 9% annual return since inception (1997) and SWISX is 4.7% since inception (1997)
I will stick to my original strategy. SWTSX 60 SWISX 20 SWAGX 20
Yeah, that professor g video is absolute garbage. It shows he clearly doesn't understand why the categories are what they are. Bonds adjust risk. Figure that out first. More bonds increase safety but reduces expected returns. SWISX is developed markets only, if you're ok with ETFs, you could consider VXUS, IXUS or similar which combine developed + emerging markets into one. Common current recommendations would put international between 30-40% of the stock side (so whatever is left over after bonds, that's why you figure out stock to bond first).
Yes I got it from Professor G! Originally I was planning on doing all index funds 60 - SWTSX 20 - SWAGX 20 - SWISX
Check out the past performance of those four funds. Scroll down to Growth of $10,000 in the link below. [https://totalrealreturns.com/n/SWPPX,VMACX,DSCGX,SWISX](https://totalrealreturns.com/n/SWPPX,VMACX,DSCGX,SWISX) The mutual funds have the advantage of very low minimum purchase amounts - $1 - and all except DSCGX can be enrolled in Schwab's Automatic Investing Plan for automatic purchases of as little as $1 as often as weekly. I would change your allocations, and replace SWISX with SWLGX (Schwab ® U.S. Large-Cap Growth Index Fund). SWPPX 40% SWLGX 20% VMACX 20% DSCGX 20% [https://totalrealreturns.com/n/SWLGX,SWPPX,VMACX,DSCGX](https://totalrealreturns.com/n/SWLGX,SWPPX,VMACX,DSCGX) BTW, if you are under 50 years old don't put any money in a bond fund.
Are you ok with ETFs? If yes, consider VXUS or IXUS instead of SWISX, since SWISX is developed markets only while the other 2 are developed + emerging.
The fee on VMACX (1.2%) is very high. If you're set on dedicating funds to mid-caps I'd shop around for a fund with lower fees. However, having said that... I suspect that your allocation to mid and small cap is larger than it should be, and that you chose 25% based on it being a round number rather than the right allocation for your risk tolerance. That doesn't mean it's necessarily wrong, just that I have a suspicion that you are taking on considerably more risk than you think you are. Personally, I do a [Three-Fund Portfolio](https://www.bogleheads.org/wiki/Three-fund_portfolio). If you wanted to do something similar, you could do the following: * SWPPX - S&P 500 (60-100% depending on your age and risk tolerance) * SWISX - International (0-20% depending on your age and risk tolerance) * SCHR - Intermediate term bonds (0-20% depending on your age and risk tolerance)
SWTSX is already total US stock market (including REITS and S&P 500). Adding those positions to your portfolio wouldn’t diversify it; it would weight it. To diversify you would need to add international position(s). SWISX is Schwab’s international mutual fund (developed markets). For an ETF version (since you were looking at SCHH) you have SCHF (developed international markets).
I am a complete newbie to investing. While skimming over the book, "Random Walk down Wall Street". 12th edition, I decided to follow the strategy given there. I am purchasing index mutual funds for my Roth IRA through Fidelity. On the long run, I want to maximize my Roth IRA. For today, I am making a purchase worth $300 - $42 - FFMAX (14%) $42 - SWISX (14%) $81 - SWTSX (27%) $37.5 - FRXIX (12.5%) $15 - FXLXX (5%) $22.5 - VCLT (7.5%) $22.5 - VGAVX (7.5%) $37.7 - VDIGX (12.5%) Am I making any newbie mistake here?
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.
Sorry my bad, I meant to say SWPPX. I was talking about SWISX earlier and mixed them up in my head. The variance is really +1% or -1%. It's not exactly guaranteed that small and mid-caps will outperform large caps in your particular investment years, so that 1% goes either way. Ultimately, picking either investment will work out.
Sorry my bad, I meant to say SWPPX. I was talking about SWISX earlier and mixed them up in my head. The variance is really +1% or -1%. It's not exactly guaranteed that small and mid-caps will outperform large caps in your particular investment years, so that 1% goes either way. Ultimately, picking either investment will work out.
>The difference between SWTSX and SWISX is pretty minimal Did you mean SWPPX instead of SWISX? SWTSX and SWISX don't have any country overlap (SWTSX being US only, SWISX being only developed non-US). >but I would argue that small and mid caps are not absolutely necessary for an index investor. Not necessary, maybe, but for the same effortand only a 1 basis point difference (as long as either nothing has been bought yet or taxes aren't an issue, like in an IRA), I don't see much reason to exclude the US extended market. Oh, /u/Sentinel_1116: Common current recommendations seem more like 30-40% of stock be international.
The difference between SWTSX and SWISX is pretty minimal, but I would argue that small and mid caps are not absolutely necessary for an index investor. They are pretty volatile and really offer only a minimal long-term edge. I personally own a good chunk of small and mid caps in my 401k, but have put my Roth in SWPPX. Honestly, picking between SWTSX and SWPPX is a coin flip over a fraction of a percent. He can't really fuck up with either.
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.
Really overwhelmed by all the options and trying to do the research, but it’s going a bit over my head! Could anyone offer any advice on my plan below? For context, I’m 31. I hope to retire at 55. Here’s my current plan. 403b: 70% VSTIX / 30% VCNIX My employer uses Valic and it sucks, but the two above seem to have not ludicrous expense ratios. The former tracks the S&P 500. VCNIX is a NASDAQ 100 fund, and actually has been outperforming VSTIX it looks like, but seems to be more volatile so I did this split. Valic does have VASGX as an option with an expense ratio of .14% (the other two funds range from .25 - .5), but the returns seem lower than my current picks. Roth IRA: 80% SWTSX / 20% SWISX This is with Schwab. Taxable Brokerage: 100% VT* *I’ve maxed out my retirement accounts and don’t have an HSA, so I’m opening a taxable account with Fidelity since I have a random 403b with them as well and was curious about opening a cash management account since I currently have $50k in liquid cash/emergency fund (of which $10k I will move to the taxable brokerage). I could also just open it with Schwab and do 100% SCHB? My time horizon for the taxable brokerage would be about 20 years — I assume I would dip into this first before dipping into my retirement accounts since I hope to retire early. I don’t have any bonds, and my portfolios are 2 fund portfolios at most, but I’m not risk averse. They are US heavy, but I think I feel comfortable with that. My plan is to mainly hold, I don’t think I’ll be doing much tinkering. I want to avoid rebalancing as much as possible with my taxable brokerage and I think I’m gravitating towards simplicity. The target date options on my 403b have crazy expense ratios and not as great returns.
I'd make 2 changes: * SWTSX instead of SWPPX. Why ignore thousands of US companies? SWTSX is a US total market style fund, so it'll fully include S&P 500 as a large percentage of the weight of its holdings (above 80% currently I believe), but also holds thousands of additional US companies * If you're ok with ETFs, use VXUS or IXUS for example instead of SWISX. SWISX is developed markets only, while VXUS and IXUS (and some others) combine both developed and emerging into one fund.
They aren't tracking similar indexes: FTIHX is developed + emerging, SWISX is developed only (to the best of my knowledge, Schwab doesn't have any combined developed + emerging funds).
FTIHX, since SWISX isn't a total international fund. SWISX is developed markets only, no emerging. The past decade or so may not have been as good for emerging as developed, but 2000-2009 saw emerging doing amazinga and developed not doing as well. FTIHX has you covered no matter what side is doing better (though since it is market cap weighted, emerging is only about 25-30% by weight) while SWISX is actively betting on only developed.
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.
I would reccomend AVUV AVDV, I would also say maybe have some more intl. since you have it 4 times less weighted than it usually is. Maybe something like 60% SWPPX 20% SWISX 10% AVUV 10% AVDV or something like that.
I’m currently invested like 90% SWPPX (S&P 500 index fund) and SWISX (International). Should I get another index fund that focuses on small cap?
Not a bad plan at all. There are plenty of other things you could invest in like smaller companies (via a total US market index fund like SWTSX) or companies in other developed countries (like SWISX) but there's nothing saying you *have* to. Important thing is you're saving early and investing, that should do you quite well. The rest of this is kind of a tangent, but since you mentioned sticking with it until your 60's & 70's: As you get closer to retirement age, whenever that is, you'll probably want to pull some money out of stocks and into something more stable like bonds or Treasury bills, or perhaps a fund that focuses on [current income](https://www.schwabassetmanagement.com/products/income) rather than growing your wealth. Reason for this is [sequence of returns risk](https://www.usbank.com/retirement-planning/financial-perspectives/sequence-of-returns-risk-impact-when-to-retire.html), the idea that a market downturn early in your retirement could seriously compromise how long your money lasts. As an [extreme example](https://www.fool.com/retirement/2016/10/23/the-10-most-important-years-of-your-retirement-pla.aspx), imagine someone had $1,000,000 saved up for retirement, all of it invested in a NASDAQ index fund (QQQ), and they retired on January 1, 2000. They plan to withdraw 4% ($40,000 + inflation) per year, which is generally considered pretty safe. Then the dot-com bubble bursts and the value of their portfolio craters. What was originally 4% of their portfolio becomes 10%+, and the retiree burns through their funds within 10 years. The eventual market recovery doesn't do much good because they've already spent most of their nest egg. Having some bonds or cash equivalents provides a buffer against that. How much to pull from the market is a personal choice. Conventional wisdom is [around 40%](https://www.schwab.com/retirement-portfolio) into things that aren't stocks, but then you have folks like Warren Buffett who plans to leave his wife a fund that's [90% stock](https://www.investopedia.com/articles/personal-finance/121815/buffetts-9010-asset-allocation-sound.asp) and 10% Treasury bills.
The sub does have a bit of a vangaurd bias as lots of us are bogleheads but also because vangaurd sort of invented ETFs lots of people just know vangaurd tickers better One thing about SWISX however its only holds companies from developed markets and is missing emerging markets Schwab does have one emerging market index fund SCHE as an ETF . Some of the iShares funds are just not as well known but there is nothing wrong with them Vangaurd funds are sort of like the kleenex of index funds, as far as active vs passive well thats probably about as hard as just stock picking what people are not great at either Even if there is a hot stock that is up 100% in the past few years it doesn't mean going forward its a good investment just like avtive funds I will say active management is mostly helpful in bond funds for varous reasons and can routinely outperform the index
Neither of these is a knock on IHDG, I don’t really know that one, but there are basically two reasons VXUS is the default: 1. The sub has a Vanguard bias, explained in the FAQ. One could just as easily say SWISX or EFA, but Vanguard tickers have become the shorthand. 2. Passively managed funds tend to be cheaper and simpler, and most investors would benefit from that. There’s no need to monitor performance or worry about a change in fund management. That being said, the sub will occasionally acknowledge an actively managed fund that seems to be performing well, such as AVUV (small-cap value).
> 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'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.
> is it aggressive enough for my age? An all equities (stocks) portfolio is an aggressive portfolio. Don't let reddit convince you that you have to take big concentrated sector bets to be "aggressive," that's the wrong kind of risky (happy to explain more). 80/20 US/International is a very solid buy and hold portfolio. The $7k is a limit for contributing new money to the account. Once the money is in there, buying and selling investments has no impact on that limit. Regarding the choice of international, as the other poster mentioned there is a bit of nuance to "world" funds. World stock markets are generally divided into "developed" and "emerging" markets, based on a whole list of criteria for how well developed their financial system is. Different indexers also do it slightly differently. SWISX tracks the [MSCI EAFE index](https://www.msci.com/eafe/), a developed countries index which includes a bunch of European countries, Israel, Japan, Hong Kong, Singapore, Australia, and New Zealand. Other developed markets indexes will add Canada, South Korea, and Poland. Then there's a true total world fund like VXUS, which follows the [FTSE Global All-Cap ex US Index](https://www.msci.com/eafe/), which will add the "emerging markets" of Brazil, Chile, China, Colombia, Egypt, Hungary, Iceland, India, Indonesia, Kuwait, Malaysia, Mexico, Pakistan, Philippines, Qatar, Romania, Saudi Arabia, South Africa, Taiwan, Thailand, Turkey, and the UAE. It is not quite as different as that list makes it look, as the emerging markets holdings are only 25% of the fund. (VEU is very similar to VXUS, except that it excludes small-cap stock, while VXUS includes them). There are pros and cons, (I like [this video's explanation](https://www.youtube.com/watch?v=DEV49qY0TP8)), but we're ultimately talking about 5% of your portfolio here, so it's not a huge deal either way.
Whichever tool you like more. Some don't let you auto-invest into ETFs, but most do auto-invest into their mutual fund equivalent. For example I auto-invest into VTWAX, which is the mutual fund equivalent to VT. For Schwab the funds would be: SWPPX (S&P 500) SWTSX (Total US Market) VT (there is no direct Schwab equivalent) would be a 60/40 split between SWTSX and SWISX(International) You could also just put a weekly or monthly reminder and still buy ETFs, where you log in and click a few buttons.
A. Low fee broad market index funds. Total US and total ex-US is a great core. I stay around 80/20ish. B. The losses and gains will offset. C. I'd use ETFs in a taxable account. VTI and VXUS are great choices. If you want to automate investing on the Schwab platform, SWTSX and SWISX are pretty similar. SWISX does not contain emerging markets or small cap.
Hello, My wife (32) and I (36) currently have everything in our 401ks and IRAs in the SP 500 equivalent at Schwab (IRA) and Principal (401k). The bulk of the funds are at Schwab. My question is: A) Is it fine to just leave everything in the SP500? B) If I change the allocation, is there an equivalent to VT at Schwab that I can just set and have it diversified for the “world” with one fund? C) If there isn’t does anyone know the funds available at Schwab that can mimic VT and the percentages to distribute? SWPPX (SP500), SWISX (International), SFNNX (International), SCHZ (Bonds) etc etc.. I appreciate and welcome any advice or help.
You’re coming in at a good time, lots of brokers have cut the basic commissions and fees to zero or close to it. In addition to newer entrants like Robinhood and Webull, established houses like Fidelity and Ameritrade/Schwab (recently merged) charge next to nothing for basic buy & hold investments. In terms of what to invest in, if you don’t have much to invest and/or don’t have a really good reason to hold a specific company, the best bet is typically an index fund. That more or less means a fund that doesn’t try to hand-pick companies, just buys everything within a certain basic criterion: - The stocks on the S&P 500, which are more or less the 500 biggest US companies - funds include VOO, IVV, or SPLG - Basically all US stocks - funds include VTI, ITOT, or FSKAX - Basically every stock worldwide - only one comes to mind, VT, but you could accomplish the same by splitting the money across two funds, one US and one not, like SWTSX & SWISX. (Side note, the reason for multiple funds using the same approach is basically different companies. It shouldn’t matter a ton who you pick.) The benefits to this approach are: 1. You’re not attaching your fortunes to any one company, but to the overall idea that companies will keep inventing and selling things. 2. As a result you don’t have to monitor things that closely; the fund adjusts as companies grow and shrink, appear and disappear. 3. These funds charge very low fees. Of the funds I listed, I believe SWISX has the highest fees at 0.06% per year of your balance.
I have a Schwab brokerage account where I contribute to the following funds: VFIAX SWISX I've been auto-invest into the SWISX fund but NOT to the VFIAX fund. Can someone clarify why that is? I am trying to do as much as possible automatically with the least about of brokerage accounts so appreciate any suggestions. TIA!
20 yo college student in the US, maxing out my Roth IRA with Charles Schwab for the 2023 contribution year. I also have about a quarter of my 2024 contribution so far. Looking for some recommendations for what to invest in. Thinking more along the lines of index funds because of the tax exemption and partial shares. Right now I am thinking: \- SWTSX (95%) \- SWISX (5%) I could also split into the smaller holdings: \- SWPPX (80%) \- SWMCX (10%) \- SWSSX (5%) \- SWISX (5%) Could switch it around and buy ETFs instead: \- VTI (95%) \- VXUS (5%) Any recommendations or advice would be greatly 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!
I personally do not like the advice given out on /r/dividends, in fact I'm in general skeptical of explicitly targeting dividends. I would suggest to stick to your original 70/30 plan. But, it won't make a *huge* difference either way and I'd expect SCHD to move in a similar direction as SWSTX. Regarding SWISX omitting emerging markets, it's not a huge deal. I believe VXUS places 25% of its weight into emerging markets (India/China/L. America mostly). I would suggest finding a true 'total ex-US stock market' fund. OR you could find a global stock market fund from Schwab (e.g., similar VT from Vanguard). OR if you really insist, add in an emerging market ETF. But tbh, I really don't think it's worth the complexity and ex-US developed is just as 'cheap' as emerging and will be sufficient diversification. Emerging markets can come with big tail risks, like Russia's market getting zeroed out, or sanctions on say China. Also, just to be extra clear, just because your account is at Schwab doesn't mean you have to buy Schwab products. Well, maybe your 401(k) is set up that way, but you should be able to buy Vanguard or Fidelity funds in your Roth IRA, right?
Loved this post, just found it a year later when researching getting started. From all the Boglehead books and guides I was planning on 70/30 SWSTX/SWISX. But the folks at dividends are making me consider maybe doing like 35/35/30 SWSTX/SCHD/SWISX. Is that a dumb portfolio? Tried to do the backtesting and confusingly no matter what combinations I try it seems the more SCHD the better my returns and income would be. Also it seems splitting it 3 ways lessons the downturns in bad years vs just SWSTX/SWISX. Basically torn if I should basic boglehead it or if there's some way i can incorporate a dividend index without too much overlap. Also SWISX is missing emerging markets so not sure if I should add 3% for that with something else. At Schwab for Roth and 401k so no Vanguard funds except in taxable.
SWPPX is Schwab’s S&P 500 index Mutual Fund. It has an expense ratio of 0.02%. As a mutual fund it is bought/sold by dollar value instead of number of shares (useful for ensuring all of your contribution is invested). SWTSX is their Total US Stock market Mutual Fund. It has an expense ratio of 0.03%. This can be used if you want exposure to mid and small cap stocks as well (it is market cap weighted so it won’t be huge exposure, but still something). SWISX for international equities exposure. It has an expense ratio of 0.06%. This fund is specific to large cap developed foreign markets so if you want exposure to emerging markets or mid/small cap foreign you’ll need to find something else.
The global market cap is 60/40 (U.S./International). I lean a bit towards the U.S. so I go 70/30. I also follow a three fund portfolio minus the bond fund, I will allocate to bonds when I am closer to retirement. At your age I wouldn't bother with bonds. My portfolio would be: 70% SWTSX 30% SWISX This is a 100% stock portfolio, it will experience all the market lows and highs but that's okay. You are young, time is on your side and you just have to remember to have a long term investment mindset and stick with your allocation (do not let short term events cause you to change your investment strategy). Take a lesson from Bob, the world's worst market timer: [https://youtu.be/pFgPNVytlwA?si=N-Ml-gKvAZLAmJ8o](https://youtu.be/pFgPNVytlwA?si=N-Ml-gKvAZLAmJ8o) Topic of bonds: [https://www.bogleheads.org/forum/viewtopic.php?t=328019](https://www.bogleheads.org/forum/viewtopic.php?t=328019) Topic of international: https://www.reddit.com/r/Bogleheads/comments/r3jdhi/as\_a\_us\_based\_investor\_what\_percentage\_of\_your/ In general, ETFs are more tax efficient than mutual funds. This is why ETFs are preferred in a taxable brokerage account versus mutual funds. That said, index mutual funds are plenty efficient but if I wanted to optimize my investments I would choose ETFs for a taxable account. Tax efficiency does not matter for a Roth IRA. You would normally want to max out all your tax advantaged accounts (401k, Roth IRA, HSA, etc) before investing in a taxable brokerage account. The tax drag caused by a taxable brokerage account normally makes it fall well behind tax advantaged accounts. Also, if you plan to retire early there are ways to access your money early in your 401k, Roth IRA, etc. Money management tips: https://www.reddit.com/r/personalfinance/wiki/commontopics/
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?
>I'm not sure how this is but I know there is some overlap I assume since I hold SWTSX It is likely that SWTSX holds either everything or nearly so that SCHD does. SWTSX should have no overlap with SWISX. >I have heard of other funds like VOO and SCHG and so on. Both should be fully included within SWTSX already. Factor investing theory would favor small and value, not large and growth for long term returns. >Is there anything I should change as a 32m? Since you're ok with ETFs, consider swapping SWWISX out for VXUS or IXUS instead: SWISX is developed markets only, the other 2 also include emerging.
The only minor thing I would think about is you probably could just use VTI/VXUS or whatever combo you want to use like swtsx/vxus at schwab to get global exposure as opposed to using schwab active fund that has pretty high er which is basically using index funds. SWISX is an odd one that you would have to pair with IEMG to get complete coverage, since for some reason swisx+ SCHE/VWO leaves out south korea and one of the largest companies in the world Samsung.
Agreed, it's not totally implausible but something definitely doesn't sound right. Aside from ridiculous fees, a very heavy weighting toward foreign stocks, or some really unfortunate deposit timing\*, I'm stumped. * US Large Cap (S&P 500, e.g., [VFINX](https://finance.yahoo.com/quote/VFINX/performance?p=VFINX)) - 12.22% annualized the last 10 years * US Small Cap (Russell 2000, [IWM](https://finance.yahoo.com/quote/IWM/performance?p=IWM)) - 7.51% * International Equity (MCSI EAFE, [SWISX](https://finance.yahoo.com/quote/SWISX/performance?p=SWISX)) - 4.67% * US Bonds (Bloomberg US Agg Bond, [BND](https://finance.yahoo.com/quote/BND/performance?p=BND)) - 1.72% * REITs (S&P REIT Index, [FRI](https://finance.yahoo.com/quote/FRI/performance?p=FRI)) - 7.23% \* For example small caps have been meh the last 3 years, so if the deposits have been accelerating and OP was heavily weighted toward the Russell, that's a maybe? And I'm sure small-caps will have their day soon.
>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
>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.
Now that's the $1,000 (or should I say $40,000 as that is approximately the market value of what I have invested in EISIX these days) question. On one hand, if we were looking at a clean sheet (i.e. I had no international stock allocation at the moment) I would at least consider EISIX as it appears to be a solid fund. That said, the expense ratio of 0.95% puts EISIX on the expensive side. On the other hand, I would look at SWISX because I am in a stage of my portfolio design/construction where I want to avoid the expense and complexity of actively managed funds where practical. I consider developed foreign markets efficient enough to where I question the value that active management brings. I recognize that there are some areas (e.g. emerging/frontier markets) that may benefit from some level of active management.
If you had the cash value of EISIX today, would you buy EISIX or SWISX?
I would just buy VXUS in your Schwab account. SWISX has no emerging market exposure
Gotcha. I’m gonna ask you a serious question. All bogleheads use Vanguard. I get why. We own the company. Interests alligned. Low expense ratios. I’m in SWTSX right now and its the same as VTI. Same with SWISX and VXUS? Is there any reason why switching to vanguard would be better?
Good to know, but I already have SWISX so I'll need to read a bit more into it to ensure I have my "international" side taken care of.
SWISX doesn't, and vwo and sche don't either , so missing out on samsung I think is a pretty big deal as its one of the biggest ex-us companies out there. VXUS and IXUS for that matter both hold south korea holdings. I believe \~3.55% of their overall holdings. Its a bit weird as VEA , vanguard developed market etf , holds south korean holdings, but swisx also a developed market fund, doesn't hold South Korea.
There is no need to combine SWISX and VXUS. VXUS is a Total International Stock Market index fund and includes both developed and emerging markets. Yes, it includes South Korea.
Can we get nerdier? Haha. Thank you for the response though! I'll research it later when I have time, but do you know if SWISX and/or VXUS are in the South Korea market? Seems like that would be a pretty important area to miss.
Thanks for the well thought out response! I have read a little about VXUS and that it needs to be added due to missing important markets. The commenter below you pointed this out. Do you believe VXUS is enough for you or will you/consider combining it with SWISX like others do?
> I guess my question is, are SWISX and SWTSX okay investments for a three fund portfolio? Generally speaking yes. If you want to get a little more nerdy: SWISX only contains developed markets and not emerging markets. For that reason I don't like it. My Roth IRA at Schwab is SWTSX and VXUS. > I guess my concern is that it's not "catchy" like Vanguards VTSAX, VTIAX, and VBTLX. Am I overthinking this? Vanguard basically started low cost index funds so a lot of the literature out there references their funds. But there are plenty of other good choices. > Assuming the three fund portfolio theory holds up, should I be okay with Schwab instead of Vanguard? Schwab is an excellent brokerage.
I wouldn't. SWTSX and VOO have the same expense ratio. S&P 500 and Total Market effectively fill the same role. IMO, it's going to be a crap shoot on which performs slightly better. SWISX actually has a slightly lower expense ratio than VXUS. I think you're just fine either way. I don't really see a compelling reason to switch.
>Is there another vanguard international ETF anyone would suggest? VXUS is a very broad ex-US fund, containing both developed and emerging markets. Schwab doesn't offer any combined developed + emerging funds of their own (SWISX is developed only). >Is it worth selling both SWTSX and SWISX for VOO? I'd say no. You'd be going less diversified and chasing recent returns (a good way to end up behind, not ahead). >Or maybe something like VUG? Long term, Value (especially small cap), not Growth, probably has the best expected long term returns.
They charge you to buy other brokerage's mutual funds. They have their own versions of VTSAX and VTIAX. SWTSX and SWISX
The equivalent mutual funds are Schwab mutual funds. VFIAX = SWPPX VTSNX = SWISX VSCIX = SWSSX VMCIX = SWMCX Note that Schwab has a large mutual fund marketplace which are NTF (no transaction fee) so if you want to use a fund from a different investment manager - it may also be available at Schwab/TDA.
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.
Schwab doesn’t have emerging markets that’s why difference in returns is my guess. Compare vea to swisx. Vea is slightly better performer not sure if that’s due to inclusion of South Korean market as seen [here](https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=4&startYear=1985&firstMonth=1&endYear=2023&lastMonth=12&calendarAligned=true&includeYTD=false&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPercentage=0.0&frequency=4&rebalanceType=1&absoluteDeviation=5.0&relativeDeviation=25.0&leverageType=0&leverageRatio=0.0&debtAmount=0&debtInterest=0.0&maintenanceMargin=25.0&leveragedBenchmark=false&reinvestDividends=true&showYield=false&showFactors=false&factorModel=3&portfolioNames=false&portfolioName1=Portfolio+1&portfolioName2=Portfolio+2&portfolioName3=Portfolio+3&symbol1=SWISX&allocation1_1=100&symbol2=VEA&allocation2_2=100)
For long term investing, the most important benefit of ETFs is their tax efficiency. This is moot inside an IRA. In addition, based on the funds you are looking at I assume your IRA is with Schwab. Schwab doesn’t support fractional ETFs, so you have to buy in whole shares. For these reasons I recommend using the Schwab mutual funds. My IRA is with Schwab. However there is some additional tweaking I would recommend. I love SWTSX, leave that one alone. SWISX does not include emerging markets, only developed. I prefer a total market approach so I substitute VXUS for SWISX. My IRA is SWTSX + VXUS. Generally I don’t recommend holding bonds in a Roth IRA. You want your best performing assets in your Roth IRA since it has the most potential for growth. Most of my bond allocation is in my 401(k) plus some I Bonds.
For your Schwab Roth IRA, invest 80% into SWTSX & 20% into SWISX. Total world diversity strategy. Don't look back until you turn 50 years old. Another option is 100% SWTSX if you don't believe in international exposure. SWTSX is a Total USA fund.
I am confused , A roth IRA is a retirement account, you probably do not want your emergency fund inside a Roth IRA For a Roth IRA I would invest in broad market index funds like SWTSX (Broad market USA index) and if you want some foreign exposure SWISX what is a broad market foreign fund (however it only holds developed markets) Now those fund are risky in the short term, they are not suitable for short term savings like an emergency fund , long term (20+ years) you could say they are safe. Meaning they could drop 50% tomorrow , but over 20+ years you should see good returns so again these are LONG TERM holds For an emergency fund I would do something very safe like a money market mutual fund SWVXX this fund shouldn't lose value and give a fair interest rate
what if my shares are a schwab mutual fund like SWISX?
No point. That robo advisor is meant for those with far too much money to invest in a taxable brokerage account. For IRA investing stick to their core Index mutual funds. SWTSX (Total USA fund) SWPPX (S&P 500) SNXFX (Schwab 1000 fund) SWISX (International developed market).
Recently stopped using my financial advisor who was managing my $20K Roth IRA with Charles Schwab. Need advice if the portfolio that he set up is my best option or if it would be better to invest in Schwab’s mutual funds going forward Current Portfolio: 10% FNDF, 20% SCHV, 70% SCHX Mutual Funds I’m thinking: 70% SWPPX, 30% SWISX Not sure if I should sell the ETFs that he bought for me and buy these mutual funds, leave the ETFs as is and buy mutual funds going forward, or continue investing in the ETFs that he picked out. What would make the most sense?
Schwab is best for travelers and expats. Otherwise, go with Fidelity. Fidelity has slightly lower expense ratios with their Index mutual funds for IRAs. SWTSX for Schwab and FZROX for Fidelity. For international funds, SWISX for Schwab and FTIHX for Fidelity. No one under 50 years old should have 30% allocation into bonds. Shift that 30% towards into a Total USA fund. Regarding savings, either your checking account at 2% or Discover savings account should suffice. Discover has easy integration with Fidelity and Schwab, and it is easy to pull money out from any USA ATM.
I don't know your retirement timeline, but if they recommend 40% bonds you should be 10 years or less away from retirement. 20+ years from retirement, an investor should never have that high of a bond allocation. I would avoid them and use Fidelity and Schwab. Assuming you have less than 10 years to retiree: - Total USA fund 60% - A USA bond fund 40% If you have 20+ years to retiree, below is an example allocation with far lower fees: - Total USA 80%. FZROX or SWTSX in an IRA. VTI or SCHB in a regular taxable brokerage account. - International 20%. FTIHX or SWISX in an IRA. VXUS or SCHF in a regular taxable brokerage account. Fees: - No account fees for Fidelity and Charles Schwab. - FZROX 0% expense ratio. - SWTSX 0.03% expense ratio - VTI and SCHB 0.03% expense ratio. - FTIHX and SWISX 0.06% expense ratio. - SCHF 0.06% expense ratio. - VXUS 0.07% expense ratio.
In short, no. They are great near retirement with less volitility. Not while you are building wealth. For building wealth long-term (until your mid 50s) with Charles Schwab, you are better off with these 3 primary choices below: - SWPPX (S&P 500) - SWTSX (Total USA fund) - SNXFX (Schwab 1000 fund) You can supplement it with international exposure (SWISX) or large cap growth (SWLGX). Max 30%.
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.
Maybe pass on the 401k, and focus on the Roth 401k & Roth IRA. You should be fine in the long-term. Some may say diversify into small cap and international funds at least in your IRA. Assuming you are with Charles Schwab, SWSSX and/or SWISX.
VXUS, FSGGX (has no small caps, I think), SWISX/SCHF (has no emerging markets, maybe combine it with SCHE)
I have about 350 in cash in my Roth IRA account. I want to buy more of SWTSX and SWISX. My question is, should I wait for the market to really capitulate or just throw it in. I am currently doing $45 a week into the account, and I feel that the market will continue to go down so I am not sure just lump summing my money right now would be a great idea. I am leaning towards waiting for a real capitulation in the market before buying in with that extra cash I have, but wanted to hear others thoughts/opinions. (I am 20 years old btw if that makes a difference)
Those are Vanguard funds which is why there’s a fee, use the Schwab equivalents SWTSX and SWISX those should be fee free
If you live in the USA, start with Fidelity or Charles Schwab for investing. The pathway usually goes like this: 1) 3 months or $2k emergency money in a high interest savings account. Discover, Capital One, or SoFi. 2) Try to take advantage of your employer's 401k/403B match if they offer a low expense ratio S&P 500 fund or a low expense ratio Target Date fund. Invest as much as you can to the max match. 3) Try to max out your annual IRA deposit if you can ($541.66 per month for 2023). Preferably a Roth IRA if you are eligible. Invest into a Total USA index mutual fund. FSKAX for Fidelity and SWTSX with Schwab. Maybe allocate 20% into international index mutual funds for diversity (FTIHX or SWISX). If you do this, you will be in a great position in 20+ years. 4) If you still have extra cash beyond that, look into a Total USA ETF or a dividend growth ETF. VTI or SCHB for a Total USA ETF. SCHD or DGRO for dividend growth ETF. Usually high income earners reach this level.
I’m 25, living in the US and saving for retirement (I have a SIMPLE and a Roth IRA, contributions maxed out at about $1300/month total) and I’m trying to learn more about where to put my money and why. I like the idea of index funds/ETFs (basket of stocks, passively managed) but I don’t know much about allocation, risk mitigation, or diversification (more so how to keep my portfolio diverse without over diversifying) and I feel like I don’t even know enough to know what to look for... What are some good resources for how to set up an efficient portfolio?? And does anyone have any advice on where to put my money/vehicles or markets to look into?? Also is there any advantage or reason to have my accounts differ (holdings in my roth vs simple) or does it make more sense to just keep everything roughly the same in terms of breakdown? Risk tolerance is relatively high, only about 5% of my portfolio is bonds at the moment since I don’t plan to retire til I’m 60-65. My current holdings are QQQ (10%), SPY (28%), SPYG (14%), VWO (5%), VNQ (17%), SWISX (13%), with the remaining 9% in Schwab target funds.
Don't over invest into individual stocks. No more than 10% of your IRA or taxable brokerage account. It is a bad long-term strategy. Focus on Index mutual funds and low expense ratio ETFs. Below is an example Roth IRA portfolio with Schwab: 70% into SWTSX 20% into SWISX 10% into Apple.
Yes. Exactly what I would do. The emerging fund is tempting but you can still get some emerging exposure from SWISX.