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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it's not really that deep. the bulk of my money is in SWTSX and SWISX. i set aside a small amount for dicking around, which is where I've got the afore mentioned positions.
Help Pick a new brokerage for 403b. I have a 403b at work with a limited number of choices for investment companies. Unfortunately, I'm not familiar with any of them and was hoping the community might help me narrow down my choices. I have several investments (Brokerage, IRA, Roth, 403b, HYSA) with Schwab, Fidelity, FNBO, and American Century. American Century currently holds my 403b (about 15% of total). I am very unhappy with the funds available and performance, in short, I need to move. I have been very happy with Schwab (preferred) and Fidelity over the past 25 years, but they are not available through my workplace. My preferred investments are index ETFs (VOO, SWPPX, SWISX, SWLGX, etc.) as well as some GLD and about 5% cash. I'm not really interested in actively managed MFs as they tend to have higher fees. I don't really need to put any money in this fund into cash or gold as I can re-allocate at Fidelity or Schwab to balance my portfolio when needed. Below is a list of investment companies available to me. * American Century Services LLC * Ameriprise Financial / RiverSource * Aspire Financial Services * Confidential Planning – MultiChoice * Corebridge Financial (formerly AIG/VALIC) * Equitable (formerly AXA) * Fiduciary Trust Co. of New Hampshire (Formerly Waddell & Reed) * GWN / Employee Deposit Acct * Invesco OppenheimerFunds * Lincoln Investment Planning * Lincoln National * MetLife * Mutual Inc / PlanMember Services * NY Life Ins. & Annuity Corp. * Oldham Resource Group, Inc. * Orion Portfolio Solutions, LLC (Formerly FTJ FundChoice) * PenServ SmartSAV (formerly Foresters) * PlanMember Services Corp. * Security Benefit * The Legend Group * Thrivent Financial for Lutherans * Voya Financial (Natl NY) Please help me to narrow this list down for further research. I'm also open to other ideas that people might have, if there are any. When I started investing at 21, I knew very little and kind of just random picked. In the last 15 years of so, I've become much smarter about where to invest but I am an IT guy, not a financial guy. If this were IT, I'd say that I know just enough to be dangerous. All "advice" is welcome, but please do not flame me for being stupid in the past. No AI responses PLEASE. Thank you to everyone else who's willing to help!
Just looking for input/opinions on portfolio ideas for my retirement accounts. Disclaimer: I don't consider myself a financially savvy person, especially when it comes to investing. These ideas come from a mix of google research and AI. I currently have everything in S&P 500 funds or Target Date Funds. Keep in mind that I have limited fund options for some of these accounts. If you want a full list of what is available to me I can provide it. I prefer to keep things fairly simple. I believe I can setup auto rebalance with Fidelity but I can't with my Schwab Roth IRA. I would say I have a fairly high risk tolerance at the moment. Currently 40 years old, with an expected retirement age of 65. Employer 401k (Fidelity): 55% FXAIX, 15 FSMDX, 10 FSSNX, 15 FSGGX, 5 FXNAX Employer HSA (BoA): 100% VTWAX Roth IRA (Schwab): 70% SWTSX, 20 SWISX, 10 SWSSX (If VT were an option here I would likely go 100% on that. I could do VTWAX again but there are transaction fees)
This is super helpful! I will read up on these links! I didn’t notice any Bonds or mutual funds in your brokerage account and curious why that was, in specific no bonds? I believe this is what you mentioned, which I think i’ll plan on doing the same unless there’s a better way to strategize or optimize/diversify: SWTSX (MF, Total Market)/ SWISX (INTL MF) / SWAGX (MF Bond) - In ROTH IRA SCHB (US ETF) / IXUS (INTL ETF) - In Brokerage SWVXX (MMF) / USFR (FL TREAS ETF)
Ok so this is what I am going to do today: SWTSX/SWISX/SWAGX - Roth IRA SCHB/IXUS - Brokerage (taxable) SWVXX/USFR - uninvested in brokerage. What percentages should be the breakdown?
Ohh I see! I thought the SWAGX was in your Roth IRA. Since I am not elligible for a Traditional IRA, would I just forgo the SWAGX entirely and just stick with SWTSX and SWISX in my Roth IRA, or is it good to add the SWAGX to my Roth IRA? I would like to use the Boglehead 3 pillars to investment - which is having diversified accounts in each brokerage and IRA. This is what I am thinking: SWTSX/SWISX/SWAGX: in Roth IRA account SCHB/IXUS: in brokerage (taxable account). SWVXX and USFR for uninvested cash (for liquid money). Anything I can change to make it stronger? And regarding investing in 401k in index funds, can I invest in these same above at Fidelity since my 401k is with fidelity?
I agree with everything that guy said in that response. He’s right about SWISX not including emerging markets. I personally I decided not to care because I like the simplicity of sticking with Schwab mutual funds in my IRA. I do use IXUS instead of SCHF in my taxable which does include emerging markets. Your 401k should include index fund options as well. You should pick those, or a target date fund for simplicity. As far as asset allocation goes you can either maintain the same ratio of US, INTL and Bonds in each or you can think of them as 1 giant bucket and just make sure you allocation is right across all in aggregate. The later lets you optimize for tax efficiency. That is why my bonds are all in tax deferred accounts (also because they have a lower expected returns) and my Roth is all stocks https://www.bogleheads.org/wiki/Tax-efficient_fund_placement
SGOV and USFR and money market fund are essentially equivalent so I didn’t have a need or reason for both. I have a Traditional IRA at Schwab so that’s where my SWAGX is. My Roth is all SWTSX and SWISX.
This page lists all of Schwab’s Index mutual funds and ETFs https://www.schwab.com/schwab-index-funds-etfs Personally I have SWTSX/SWISX/SWAGX (bonds) in my retirement accounts at Schwab and SCHB/IXUS (international) in my brokerage. The specific ETFs/Funds don’t matter; diversifying across the asset classes with low cost funds is what matters. There are alot of different funds you can use to implement that strategy. An alternative approach you might consider in your IRS is a single Target Date Index Fund. It’s a fund of funds, comprising low cost index funds that covers all the asset classes we’ve been talking about and automatically becomes more conservative as the target date approaches. It’s a one stop shop. https://www.schwabassetmanagement.com/products/stir Just make sure you understand the asset allocation and how it changes over time. You can always start with one and switch to a more DIY approach later. No harm changing your portfolio inside your Ira
also is there anything you would change from my plan - add or take out? Also, how did you find out that SWISX is the International fund version, where can I look this up on their website? Are there others you would add to the IRA, either ETFs or mutual funds?
Regarding International…. It diversifies you away from just the US. The US market has outperformed the global market for a while but no idea if that will continue. Plenty of smart people say US only is fine because the biggest US companies are international businesses. Other people say that ignores large swaths of the global economy. I have no idea what the future holds. Personally I the I’m about 30% of my stocks allocated to International. Last year was the first time in a long time International outperformed the US. SWISX is fine in either in a taxable or tax sheltered account. It will tend to pay a bit more dividend then SWTSX but still pretty tax efficient. If you are holding in taxable accounts I’d favor the ETF versions. SCHB is the ETF equivalent to SWTSX, SCHF is the ETF equivalent to SWISX. SWVXX is fine, TBILL ETFs like SGOV or FRN ETFs like USFR, or TBills are all fine places for cash. Personally I found directly buying TBills to be inconvenient so stopped and just use the ETFs and Money Markets now.
Awesome; yes sorry was a typo and was SWTSX. The SWISX, is it a good idea to get international? And would this be in a taxable account? That’s a great idea on the sweep! Someone on my new post said that SWVXX is an unrated bond and to get something like a treasury bill instead, is this a good idea? Great point on SCHD as well in an IRA, but if there’s no need, I can skip it!
It’s SWTSX, assuming you mean Schwab’s Total Market fund. If you want International exposure their International fund is SWISX. You don’t need a separate account at Fidelity unless you want it for some other purpose. Their sweep options are better than what you get at Schwab for uninvested cash but that’s only an issue if you leave the cash sitting in your Schwab account. Investing, like you would be doing by buying SWVXX, SGOV or USFR, solves that problem. The downside to Schwab is having to do it manually whereas Fidelity automates (sweeps) the cash to and from their SPAXX money market for you. The manual options actually yield a bit more so are better as long as you are ok with the manual step. Personally, I don’t see a reason to overweight dividend stocks, all the stocks in SCHD are already in SWTSX and SCHB. If you do decide to hold SCHD consider holding it in your IRA to minimize the tax drag.
>It looks like you favor the rational reminder pod casts They tend to be informative and heavy on citations to back their point. >You might be familiar with the counter argument of over diversification or "Diworsification." Over complication, diminished returns, higher costs, and no meaningful reduction in risk I am, but don't believe it applies to going global. >I don't want to buy outside my field of competence. Given that I've seen several times before that people invent falsehoods for even the S&P 500, I'd tend to suggest a broad coverage approach (especially including going global) as the bulk of a portfolio. If you believe you have any "expertise" then you can work that into a bets section, but don't assume your knowledge of X gives you knowledge of Y (Iexample: I've seen people say things like "I know tech, I work in tech, I think I have an advantage over others and wish to weight tech more heavily" my counter: "you may know tech, and that may give you a benefit for tech company vs tech company, but it doesn't inform you about tech vs other sectors"). >I will brainstorm a 60/30/5/5 or 40/20/15/15 split between SWPPX/QQQM/SWISX/SWSSX. I wouldn't touch QQQM myself (again, inclusion critera). Why SWISX? It excludes emerging markets. Also common current recommendations tend to be for 30-40% of stock be international.
Thank you for the correction for FTEC. It looks like you favor the rational reminder pod casts and I appreciate the share. I might be a fan. I agree sector bets are not a bet I would like to make as well. They are interesting to read into. The irrational exuberance is a good point. It's the popular explanation behind the dot com bubble, housing crisis/recession, and even internationally with china's building frenzy. It's a story repeated monthly through 2025, 2024, 2023, etc. The biggest mistake I can make right now other than to buy nothing is to buy any individual stocks. You might be familiar with the counter argument of over diversification or "Diworsification." Over complication, diminished returns, higher costs, and no meaningful reduction in risk. I don't want to buy outside my field of competence. I will brainstorm a 60/30/5/5 or 40/20/15/15 split between SWPPX/QQQM/SWISX/SWSSX.
Have you ever asked what's inside an asset class or what fama-french used for their data? Call me old fashioned but I like to know what's in my sausage before I eat it. Assuming the cbs article had data backing it, if the strategy grew on average 9.5% as shown by the large cap growth, that is not a failure. It's on the lower end of the past 25 years for SWPPX so that reinforces the idea the large cap is consistent because its average has held the past 70 years plus 15 of the most recent years. The past 25 years of SWISX and SWSSX have been averaging less than 9.5% (4% and 7% respectively). I will make a compromise with you. I will read more into SWISX and SWSSX and add them to a 5 year watch list and if they show consistency in bringing their average up to 11.8% in that time frame, I will DCA and rebalance a portion into them. There isn't any reason I cannot diversify more into the market over time.
>SWPPX, SWISX, and SWSSX were founded in 1997. Qqq in 1999. They did not exist in 1950-1969. The indexes they follow extend far beyond the fund creation. Data for the broad category extends even further than that. >Different environment in the cold war era. And 2026-2040+ will be different than 2010-2025. One of the important lessons you're missing is that market favor changes from time to time, that you can't rely on a short term back test to predict future returns like you may be trying to. >One is outdated from 2010 It still shows a 70+ year period where your strategy would have failed compared to a better diversified portfolio. >another doesn't mention small caps or international funds Not all links cover all topics. They should be taken and lessons from one added to lessons from another. >I appreciate the shot gun approach with sharing sources but maybe you could recommend some small cap and international funds I can use to compare to SWPPX? Don't focus as much on the funds (doing so needlessly limits the available data), look instead towards the index and the asset class. The funds will have extremely similar performance to those.
Etfrc is unfortunately a problem with AI chat bots. They regularly provide bad info. The weighting between SPY vs QQQM is 50% but you are correct the count is around 85% stocks. Good point. I'm still okay with 515 unique stocks because it still exceeds a 100% pure SWPPX investment. SWPPX, SWISX, and SWSSX were founded in 1997. Qqq in 1999. They did not exist in 1950-1969. Different environment in the cold war era. The articles are not convincing. One is outdated from 2010, another doesn't mention small caps or international funds. I appreciate the shot gun approach with sharing sources but maybe you could recommend some small cap and international funds I can use to compare to SWPPX?
>550 stocks is probably plenty I don't need to add 2700 more stocks. SWPPX adds about 400 unique stocks and QQQM adds about 50 unique stocks. Overall it's about 45% tech weighted and about 50-100 overlapping stocks out of 550. SWPPX should be about 500 stocks. By count, I'm seeing over 85% of QQQM is inside S&P 500 already (using SPY as this tool doesn't allow MFs). That's less than 15 new stocks added. ETF Overlap Tool: https://www.etfrc.com/funds/overlap.php >but most of them average around 4.5-7% over the past 15-25 years You're falling for a common beginner behavioral mistake. Historically, the better the previous 10 years were, it seems the worse the next 10 years generally were: https://www.lazyportfolioetf.com/allocation/us-stocks-rolling-returns/ scroll down to “Previous vs subsequent Returns” (I do wish this had an r^2 measure). What about those extended periods that saw international beat the US (S&P 500)? Did that make S&P 500 a bad decision? Well, no, market favor flipped. * PWL using Morningstar Data for decades back to 1950: https://pbs.twimg.com/media/GGJxJPsWsAAxy9c?format=png * Here’s US vs ex-US going back to 1970: https://www.reddit.com/r/Bogleheads/comments/199zs0s/us_exus_equity_and_bonds_dating_back_to_1970_not/ * Going back to 1950, all excess returns the US enjoys today come only from around 2010 or so until now. That means a roughly 60 year period where international would have been on top (1950-2010). As for small caps: Factor investing starting points: * https://www.investopedia.com/terms/f/factor-investing.asp * https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/fidelity/fidelity-overview-of-factor-investing.pdf (PDF) * https://www.cbsnews.com/news/the-black-hole-of-investing/ * https://www.dimensional.com/ca-en/insights/when-its-value-versus-growth-history-is-on-values-side * But be aware that factor premiums can take a while to show up: https://www.reddit.com/r/Bogleheads/comments/1hmbwuw/what_every_longterm_investor_should_know_about/ You'll see that they've tended to beat large in the long run, but it can take a long time for them to cycle back into favor. Both international and smaller caps are capable of exceptional growth, you're incorrectly assuming all time periods will look like the last 15-25 years. >I would prefer a high yields savings account averaging 4-5% to offer consistency. Nowhere near comparable. >I'll consider SWSSX and SWISX but at 30% weighted, they costs the portfolio about 20-25% of its final value. Only if 2000-2025 or 2010-2025 was your investing window, but it isn't. You're incorrectly placing those returns on 2026-2041 or 2026-2051. But we've seen other 20 year periods (and longer) where favor was with international (such as, using my PWL link above, 1950-1969 or 1970-1989 to name 2). We've seen 20+ year periods where small caps (especially the value side) beat large at the end. Why does your back test give certainty about the future when the same methodology would have failed at other points in time?
Thanks for the reply! 550 stocks is probably plenty. SWPPX adds about 400 unique stocks and QQQM adds about 50 unique stocks. Overall it's about 45% tech weighted and about 50-100 overlapping stocks out of 550. I looked at small cap and international funds to maybe replace SPMO which has the most overlap but most of them average around 4.5-7% over the past 15-25 years and I would prefer a high yields savings account averaging 4-5% to offer consistency. I'll consider SWSSX and SWISX but at 30% weighted, they costs the portfolio about 20-25% of its final value.
I would stick with a three fund portfolio minus the bond fund. [https://www.bogleheads.org/wiki/Three-fund\_portfolio](https://www.bogleheads.org/wiki/Three-fund_portfolio) I would do 80% VTI and 20% VXUS (they can be purchased just as easy at Fidelity or Vanguard, doesn't make much difference). I am guessing you currently have the funds invested in a taxable brokerage account at Schwab, which means you would have to sell the fund you have at Schwab since you want to make a portfolio change but that could incur a capital gains tax. Unless the fund you are currently invested in is terrible, you might also look into the option of keeping it and investing all future money in 80% SWTSX and 20% SWISX at Schwab.
one thing i forgot to ask to circle back to this original comment was - which ETF’s do you invest in? Also, how do you know which to pick? to clarify, is the SWTSX and SWISX index funds?
Realistically, it doesn't particularly matter what brokerage of those 3, they all have their upsides and some downsides. I'm at Schwab, I actually like it alot, I've gotten one call from a Schwab rep at my local place. He answers any questions I have but other than that, they really leave me alone and don't push anything. Their website and app are very easy to work with. I keep my investments very simple, SWTSX(total US stock market) and SWISX (Internal markets fund) in a 80/20 split. Set it to auto deposit bi-monthly lined up with my paycheck and auto-invest. Only downside I have found is you can't auto-invest in ETF's, but it's really not a big deal to me to just pick the mutual fund versions. I've heard good things about all of them but Schwab has very easy to work with customer service.
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 dont see much holding in China in you portfolio. SICNX Japan 19.93% United Kingdom 14.28% France 12.78% Switzerland 9.55% Australia 7.41% Germany 7.06% Netherlands 5.51% United States 3.30% Spain 2.78% Other 2.11% Norway 1.88% Canada 1.72% Korea 1.52% Italy 1.37% Hong Kong 1.27% Finland 1.06% Singapore 1.03% Luxembourg 0.94% Denmark 0.75% Greece 0.69% Brazil 0.67% China 0.60% SWISX Country Breakdown Sector % Weight Japan 22.33% United Kingdom 15.05% Switzerland 10.99% France 10.47% Australia 7.84% Germany 7.47% Netherlands 5.16% Sweden 3.35% Hong Kong 2.94% Denmark 2.81% Spain 2.37% Italy 1.81% Singapore 1.46% Finland 1.21% Ireland 0.95% Norway 0.84% Belgium 0.83% Israel 0.70% United States 0.40% Luxembourg 0.25% New Zealand 0.24% Portugal 0.18% Austria 0.17% Isle of Man 0.06% Bermuda 0.04% Macao 0.04% China 0.02%
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!
TL;DR: For a Roth IRA where you want to automate contributions and invest every dollar, Mutual Funds (SWTSX, SWISX) are often easier to manage than ETFs because they fix your “leftover cash” problem. Great question! They are very similar but have a few key differences for your situation: Mutual Funds: You can invest any dollar amount (like $625.00), so every penny is put to work immediately. No “leftover” cash sitting around. You can set up automatic monthly transfers that buy the fund directly. This is “set it and forget it”. They only trade once a day at the market close price. ETFs (Exchange Traded Funds): You generally have to buy full shares (e.g., 1 share of VTI costs ~$270). If you have $625 to invest, you buy 2 shares and have ~$85 sitting in cash until next month. They trade like stocks throughout the day, so prices change constantly. In taxable accounts, they can be slightly better for taxes, but inside a Roth IRA (like yours), this does not matter at all.
You are overthinking the precision. Schwab doesn’t do fractional ETFs, but their mutual funds allow exact dollar investing. Swap your ETFs for Schwab’s mutual fund versions (like SWTSX for VTI and SWISX for VXUS) to hit your exact 80/15/5 split and invest every penny. If you stay with ETFs, put the leftovers into SWTSX instead of SNXFX. It is cheaper (0.03% vs 0.05% expense ratio) and tracks the total market just like VTI, making it a more efficient parking spot for your excess cash.
So I did some math . what is your split the vangaurd TDF is rougly split 60/40% between foreign and domestic If you had the same split and invested in the two schwab funds $100 at begining of year you would have SWTSX 16,25% return = 60\*16,25%=10.88 SWISX 27.20% return = 40\*27.20% = $9.75 Total return 20.63% So its roughly equal . But this is assuming you had $100 invested on 01/01/2025 and it sounds like you did not so your returns will be less
Two things You might not be comparing apples to apples the 2065 does have a YTD return of about 20%. However I assume you have been making contributions periodically, meaning you did not buy on Jan 2 of 2026 some of your purchases presumably would have happened last week/month , your purchase that happened last week or month wouldn't have a 20% return That probably accounts for like 95% of the differences , second there may be some slight differences on weight depending on your split between SWTSX and SWISX.
Pretty solid start for 3 months in, but you’ve got some overlap. SWTSX already covers large caps like SWLGX, and SWISX + SCHE gives a slight tilt abroad but still leaves you heavy on the US. PLTR and IBIT are just pure bets, so know they’ll swing hard. Personally, I’d simplify and focus on broad exposure first. Check this breakdown of your allocation: [https://www.insightfol.io/en/portfolios/report/ee02071325/](https://www.insightfol.io/en/portfolios/report/ee02071325/)
I am with regard to individual stocks. All of my other retirement investments are in index funds/bonds - SWISX, SCHG, and, SGOV - following a traditional 3 fund portfolio to an extent. I don’t play with those accounts.
How much should I better diversify my investments to prepare for an upcoming market downturn in response to new interest rates? Right now these are my investment instructions for my 401k: 60% in VINIX 15% in FSMAX 25% in SWISX Additionally, I want to open a Roth IRA and max that out. Is this a bad time to do that in case we see a crash? Would it be better to invest small amounts rather than a full $7000 investment today?
The overlap is with SWPPX being a subset of SWTSX. If you held SWISX and SWTSX you would hold international ex-USA large cap equities and all USA equities.
I hold SWISX, SWPPX, and SWTSX in my Roth IRA. Is that a good lineup? I’ve heard of there being overlap, but then shouldn’t everyone just hold international funds? Can someone explain to me the right thing to do with my portfolio please?
Not sure if this is right place to put this. I'm finally starting out investing and using retirement accounts. I've done a bunch of research. I've got about a 32 year time horizon. I've never really asked for advice about this stuff. Here is my allocation: Roth IRA (represents 40% of my total portfolio): 35% FNILX (broad large cap) 30% XMMO (mid cap momentum, overweighted here because I can't get this in my other accounts) 15% AVUV (small cap value) 15% FZILX (broad international, developed and emerging) 5% AVDV (international small cap value) Roth 403b (represents 20% of my total portfolio): 65% VIIIX (S&P index) 15% DFFVX (small cap value) 20% VTSNX (broad international, developed and emerging) Roth 401k (represents 40% of my total portfolio): 65% SWPPX (S&P index) 15% DFFVX (small cap value) 10% SWISX (broad international, developed) 10% DCEFX (broad international, emerging)
[https://www.bogleheads.org/wiki/Lazy\_portfolios#Three-fund\_lazy\_portfolios](https://www.bogleheads.org/wiki/Lazy_portfolios#Three-fund_lazy_portfolios) [https://www.bogleheads.org/wiki/Three-fund\_portfolio](https://www.bogleheads.org/wiki/Three-fund_portfolio) some more schwab funds like SWTSX the other posts have mentioned as well (SWISX), or Schwab etfs like SCHB and SCHF
You can get a globally diversified portfolio by using a mix of the Schwab Total Stock Market Index Fund ([SWTSX](https://www.schwabassetmanagement.com/products/swtsx)) and the Schwab International Index Fund ([SWISX](https://www.schwabassetmanagement.com/products/swisx)). Since they are mutual funds, you should be able to automate investments and reinvesting dividends.
SWPPX AND SWISX, they’re mutual funds, so you can setup automatic investing. Most vanguard funds have Schwab mutual fund versions. Edit: Adding There are tons of No fee-no load mutual funds on Schwab, I just invest in mutual funds instead of etfs. They’ve been on autopilot for years now.
SWPPX AND SWISX, they’re mutual funds, so you can setup automatic investing. Most vanguard funds have Schwab mutual fund versions.
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?