SWTSX
SCHWAB TOTAL STOCK MARKET INDEX FUND SELECT SHARES
Mentions (24Hr)
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Maxed Roth IRA 2024.... invest or save money held for 2025 Roth IRA?
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?
Best aggressive investment strategy/fund type (long-time horizon)
Rate of return from Dec. 2019 to Nov. 2023 is -10%. What can I do from here?
21 Year Old Looking for Most Value/Growth for a Roth IRA
Why diversify a growth portfolio with international markets?
Wanting to invest recent VA backpay - thoughts on how I'm proceeding about doing so
Does VOO rebalance stocks for the shares I already own over time?
Recommendations for Roth IRA investments with Charles Schwab
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?
If you were to buy & hold only 1-3 ETFs till retirement, what would it/they be?
Mentions
Huh? ETFs do not defer taxes to a later date, they simply don't incur them on an annual basis due to the nature of their structure (see: heartbeat trades). The mutual fund structure is such that gains are distributed annually. See the distributions tab for SWTSX versus SCHB on the Schwab website. SWTSX hasn't distributed gains since 2021, but many mutual funds do. SCHB conversely has never distributed gains. Capital growth of the investment and realizing those gains (or losses) are no different with an ETF or a mutual fund, it sounds like you're conflating the two?
Yea its fine. Also remember ETFs will just deffer these what is a benefit but like I said its small and inconsequential Like if you DCA into SWTSX over ten years, you paid some very small portion of the capital gains every year what means when you sell you would be taxed a bit less because you already paid some of the capital gains over the past years With SCHB when you sell you would have a bigger cap gains tax when you sell , because it can defer these taxes , it doe not entirely doge them So yes is deferring $10 of capital gains for 10 years a benefit , I guess but people really make a big deal about $10 over 10 years when big picture its not going to matter
Thank you for the clarification on this. I've tried to research this subject on the internet but couldn't get a really clear answer, or I was misunderstanding. Sounds like I'm fine with sticking with the SWTSX in my brokerage. Thanks again.
Yes in a taxable account ETFs can be more tax efficient but like many things people make way too big of a deal about this MF have to distribute capital gains that can be caused by the fund buying and selling stocks and ETFs have a loophole where they can deffer these distributions However with market cap weighted index mutual funds like SWTSX, these are always very small and mostly inconsequential unless you have millions invested. I think I once calculated it out and on average schwab total market and S&P500 index had about $7 of capital gains per 100k invested over the past 10 years Like is it a benefit that ETFs can doge these distributions , yes in taxable accounts, in IRA, Roth accounts it does not matter And people tend to make a huge deal out of these when $7 out of 100k is pretty inconsequential and not going to really affect the outcome
Make sure you only look at the capital gains distributions. Both mutual funds and ETFs distribute dividends so that aspect will be the same. The last time SWTSX had a capital gains distribution was 2021.
an "index fund" isnt a thing, the index is what the vehicle for investing tracks. an etf like SPY that tracks the sp500 is an "index fund" a mutual fund that tracks the sp500 like SWTSX is an "index fund". in brokerage accounts you want etf's not mutual funds in general.
The thing to avoid is unnecessary capital gains distributions in taxable accounts. Those happen often in actively managed mutual funds with a lot of turnover. Infrequent at best with passively managed index funds. You can look up the capital gains history of SWTSX, figure out how much $$ it would have been given your current investment size, and then how much additional tax burden that'd be.
Keep 8 months of expenses in a high yield savings account like Sofi. I’m assuming this would be in the range of $25k but that’s just me assuming a lot. Then with the rest, create an account with Schwab and invest $1000 per week into the Schwab “SWTSX” ETF until you have none left. There are options in Schwab to automate this each week. Sorry to hear about your loss, but it sounds like your Dad had great habits to set you up. You are way ahead of the game with a home purchased outright, no debt, car paid etc.
SWTSX as well. Was down $17k today. I was like WTF!! My other etrade accounts looked uneventful, and was thinking that some huge fraud was discovered or something.
I received no notices in either of my accounts that hold SWPPX and SWTSX. I did not receive any emails regarding splits, either. So frustrating and disappointing.
You didn't lose any money. Simply put, like for a stock split, the number of shares you now own has gone up by the factor of the split and the NAV has gone down by the factor of the split (6:1 in the case of SWPPX, 7:1 in the case of SWTSX, and 10:1 in the case of SNFNX). The market value remains the same, thus you did not lose any money. Make sense?
Thanks for the info, I had been wondering what the hell happened when I saw that my SWPPX position dropped \~83% today and now I know. For the curious, it appears a split for a mutual fund works a lot like a stock split in terms of the number of shares you end up with is increased by the factor of the split and the NAV is reduced by the factor of the split (6:1 in the case of SWPPX, 7:1 in the case of SWTSX, and 10:1 in the case of SNXFX) while the market value remains the same.
Anyone gonna buy the dip on SWTSX?
So then do you think i should sell all of my SWPPX for SWTSX? Is there no benefit for holding SWPPX specifically?
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?
Leaving an old 401(k) parked isn’t the end of the world, especially if it offers low‑cost index options like SWTSX. Rolling to an IRA can simplify your life and open up more investment choices, but there are trade‑offs to be aware of: • \*\*Fees & funds:\*\* Some large plans give you cheap institutional share classes you can’t get on your own. Make sure the IRA you’re considering has comparable or lower costs. • \*\*Age 55 rule:\*\* Money left in a 401(k) can be withdrawn penalty‑free if you separate from service after age 55. Once it’s in an IRA you have to wait until 59½, so keeping some there might give you flexibility. • \*\*Creditor protection & backdoor Roths:\*\* 401(k)s have stronger ERISA protections from creditors, and rolling pre‑tax dollars into an IRA will complicate any backdoor Roth contributions you might want to do. If you do decide to consolidate, you typically have to sell inside the 401(k) and repurchase in the IRA (plans don’t allow in‑kind transfers), but being out of the market for a couple days isn’t catastrophic. Otherwise, letting it ride in a cheap, well‑run plan is perfectly reasonable.
You shouldn't have to liquidate anything to put it into a Rollover IRA. Just have the custodian of the Rollover pull the assets from the 401(k). 401(k) plans give employers a lot of options as to how to construct the plan and what rules to use. There could be some hinky rule in there that will get in your way down the road. I'd move it to a Rollover IRA. You just have to make sure the new custodian allows SWTSX.
>I’m struggling to buy into the idea of keeping cash in a HYSA vs. a low cost index fund (for example, SWTSX). Be honest: what would happen to you if your emergency fund dropped by 40% >As I understand it, the purpose of a HYSA is for emergency funds or to have access to cash quickly. Yes. And with zero risk to the emergency fund losing money. >Let’s assume the HYSA is 4%. After inflation and taxes, what are we really “making” letting it sit there? The point of an emergency fund isn't to make money, it's to not lose money. >Wouldn’t our money go farther in a low cost index fund that averages 7+/-%? Index funds are great for long term investments. They're terrible for a short term emergency fund. What if it drops 10, 20, 30, 40%? >It takes pretty much the same time to sell/withdraw either investment in the event of an “emergency”. Not accurate. An index fund doesn't sell until the next market close, then 1-3 days for bank transfer. If you have an emergency Friday and you sell after 4 PM, it doesn't trade until Monday and you don't get the funds until Wednesday or Thursday. >I suppose it comes down to the risk of the market downturn and needing the cash by having to sell something at a potential loss It comes down to whether you can afford for your emergency fund to lose 10-40% and still serve your needs. If you had a 6 month emergency fund in SWTSX and you lost your job tomorrow, you're gambling that the market doesn't crash and drop your 6 month fund down to a 4 month fund. What would you do if it does crash and you still can't find a job?
Holding fxaix, swisx, and swtsx. Not sure what I was thinking with the overlap between FXAIX and SWTSX. Should i sell all my fxaix for fxnax for better diversification? This is for my roth IRA I have a pension and a 401k with no match at my job as well.
The bulk of your portfolio should be index funds. VTSAX, FZROX and SWTSX give good diverse exposure.
[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
What's wrong with SWPPX? It mirrors and actually slightly outperforms VOO over the past 12 months. I have my portfolio set to transfer $2300 every two weeks to my brokerage and it automatically buys $1150 of SWPPX (same as VOO) and SWTSX (Same as VGT) every other Friday. Schwab isn't very user friendly and it takes a bit of digging and setting up to get it all squared away but once you do your investments go on autopilot and you just sit back and let it run.
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.
Just set up a schedule to deposit 200 every week into SWTSX/SWPPX.
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.
SCHA is redundant because you already have US small cap in SWTSX. SCHE is not redundant because you don't have exposure to emerging markets. A core global stock position using Schwab funds would be SCHB (or SWTSX), SCHF, and SCHE. F and E are only large cap, so if you wanted to fill in there you'd need to add additional funds.
Is it too redundant to add SCHA and SCHE to my portfolio of SCHG SCHF and SWTSX? I have a large growth tilt going that I am ok with but I want to be sure I am fully diversified too. I am 23 and will hold this for 40 years
I am 23 with 5k in my Roth IRA looking to save for 40 years. As of this month I will be contributing 300 a month plus additional money I will have left over a few months per year. Currently my portfolio is ~50% SCHG, ~30% SWTSX and ~20% SCHF. I think I am set with these 3 but am keeping my options open for possibly adding one more. Is there any glaring issues with this?
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%)
I sold 55K of SWTSX and kept everything else in my target lifecycle fund and kept my 401(k) alpine as well. I don’t believe it’s the end of the bottom and we are just getting started. I’d rather have the 55K cash to reallocate and diversify it all out of US equities.
Index funds. Period. SWTSX, SWGLX, SWISX, SFENX, SCHD. Easy
You started early, that's a great advantage. Invest a fixed amount into broad market index funds such as SWTSX. Most importantly, work on making more money, so you can invest more. Your goal of investing 50K over the next 6y is pretty modest, that's 700/month, which you probably can do already. I.e., you're assuming you'll still earn 4k/month in 25y when you should be earning way more than that by then. Grow your earning potential, increase your investment contributions proportionally, let it compound, and in \~25y you can start planning for retirement.
* Why have any dividend focus at all? * Have you considered either SWTSX or SCHB to combine SWPPX + SCHA into one? * You're currently taking on a tilt towards emerging markets compared to developed (market cap weight would be roughly 35% of stock as combined international, within that roughly 70-75% would be developed, the rest emerging). The 2 are fine, but if you want further simplicity and are willing to give up the emerging tilt, you could use VXUS or IXUS instead for your international coverage (Schwab went free to trade on ETFs, even those from other issuers, back in 2019).
Dividends aren’t always distributed evenly across the year, so your assumption is wrong. For example, [SWTSX does dividends once a year](https://www.tipranks.com/mutual-funds/swtsx/dividends).
blindly Yes, but your not blind about it. You can see it right there in the details. I’d rather have it in a no cost broad market index fund. Something like SWTSX.
I ran some models on [https://www.portfoliovisualizer.com/](https://www.portfoliovisualizer.com/) and was surprised how little variation there was between the two (less than 0.5%). For it to significantly matter, you would need to have started very early and had at least 30 years of growth. It seems to me, another thing with ETFs is your ability to get in and out of the market easier than with a MF (which I know is contrarian to what most people hold them for). I had a good feeling market would panic yesterday (get greedy when other get scared :-)) on the tariff news, only to rebound. But I thought it would have taken at least a few days. I had some cash that I put an order in for SWTSX, but because it closed at EOD, I missed the AM dip.
Are your ETFs total market indexes or something else? Assuming that they are held in an IRA, what I'm trying to figure out is, if your have a MF (for example SWTSX) that pays a single annual distribution in December, and an ETF (for example SCHK) that pays quarterly, wouldn't the ETF be more advantageous because an end of year market decline could eliminate the MF distribution, whereas you would already have three quarters of dividends from the ETF in hand? The fees and performance of both of these securities are for all intents and purposes equal, with a slight edge of performance going to SCHK.
Contrary to common misperceptions, mutual funds don't always distribute capital gains. SWTSX didn't distribute any capital gains in 2018, 2020, 2022, 2023, or 2024. In the years when SWTSX did distribute capital gains they were very small and just a fraction of the dividends that both ETFs and mutual funds distribute. Any concern about "tax efficiency" of ETFs vs mutual funds when it comes to broad index funds that have little portfolio turnover is overblown. In tax-advantaged accounts like IRAs it is a non-issue.
So I read that ETFs are more tax-efficient due to the lack of capital gains distributions. However I was looking at the distribution yield for SCHB versus SWTSX, and they're currently more or less the same. Are capital gains distributions not included in this statistic, and that's why they're so similar?
Mutual funds transactions are between you and the fund provider, not person to person like ETFs and stocks. Places would prefer you to use their mutual funds, so those tend to be free to trade, while those from other providers get an extra fee (why would you pay $75 per purchase of SWTSX if you can get FSKAX for nothing?), if allowed at all. ETrade I believe has agreements in place to offer Vanguard mutual funds at no extra cost.
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)
I decided I’m just going to do a mutual fund (SWTSX) and invest by the dollar amount to try to hit the max before the tax year ends
Schwab does not allow fractional share purchases of ETFs, only mutual funds. That is why you can buy dollar amounts of SWPPX, but only whole shares of funds such as SCHB, SCHD, SCHG, etc. If you want to throw exactly $7000 into one fund, you’ll have to choose a mutual fund. Be careful though, if you try to buy a mutual fund that isn’t a Charles Schwab product, they will charge a transaction fee, so I would suggest looking at something like SWPPX or SWTSX. If fractional ETFs are important to you, I would look at Fidelty before you contribute to your Schwab Roth IRA
Schwab only allows partial shares on stocks that make up the S&P500 index, it does not allow partial shares on ETFs or stocks out side the S&P500 Mutual funds are not stocks or ETFs they are mutual funds and they have always allowed for partial shares. So you cannot buy VTI what is an ETF by the dollar , the schwab equivalent MF is SWTSX .
You should never buy another company’s mutual fund on a different brokerage. They charge a $75 transaction fee each time. If you’re on Schwab, then use Schwabs fund SWTSX instead of VTSAX, or buy the ETF version VTI with 0 fees. If you only want to buy VTSAX, then move to Vanguard.
Schwab is great. There you could invest in SWTSX, a total stock market index fund, and own a piece of thousands of companies. It pays dividends too.
You don't need a lot of knowledge to invest in a total market index like FSKAX\[or FZROX\](Fidelity)/SWTSX(Schwab)/VTSAX(Vanguard) on a regular basis and just let it grow. Who operates the index only matters so much as they may not be available at your brokerage, or you may want to opt for one that is related to your brokerage.
So you would suggest to allocate 100% of the funds to the brokerage account and then choose like SWISX and SWTSX from there?
27% international is ok, I'd even increase that some. Favor can switch very quickly and unexpectedly (to some at least, there are many making the case for US under performance going forward that show their logic). I'd drop SWPPX. It is fully contained inside SWTSX.
I get you on the bond avoidance… you’re certainly not alone there. I think you may be missing out on some benefits regardless of your investment horizon (I’m 22 so in the same boat) but we can forget about that for now unless you’re interested. Overlap isn’t inherently bad it just increases complication unnecessarily. If you wanted to simplify my default would be to go for SWTSX since it is slightly more diversified albeit negligibly due to market weighting. Alternatively you could do SWPPX + AVUV to capture U.S. large cap and small cap value. I do something similar in my own Roth for my U.S. allocations.
Thank you for responnding. I don't have a bond fund as I believe there are better returns to be had. I 100% understand the stability of them. But I am ok with risk and I am not in it for the short haul. So even if things go South for a bit I feel in the long run things will work out, like they pretty much have over the past century or so. Do you feel it would be better to just eliminate SWTSX and have the money in SWPPX? Or is there enough non-overlapping that makes it ok to be in both? Or even sell the SWTSX and put it in something else? (If you say yes and put it in a bond fund, I will cast a Halloween spell on you that will attract teens with eggs!!! j/k)
It’s not bad! Just realize that SWTSX and SWPPX overlap massively so you’re getting almost the same thing with two different funds.
You're misinterpreting what it is saying. You're looking at it's risk score vs its category but these funds are in different categories. If you look at the overall portfolio risk score, Morningstar gives SWTSX a 73 and SWLGX a 77, indicating that the large growth fund is riskier...
I hear you, but isn’t SWTSX and SWGLX very similar in make-up to QQQ? They’re heavily weighted in the mag 7 and technology sectors
Drop it into a no cost broad market index fund like Schwab’s SWTSX.
Then you want a traditional mutual fund. To use the SWTSX example, you can invest $1. ETFs have some advantages but they are minor, especially for the new investor.
Buy SWTSX. My wife has a small play account, and I understand the gaming aspect. But don't delude yourself. if you are trading slivers of stock then you are not investing, and you and Scwhab are not good fits for each other.
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.
I’ve set it to auto-invest in SWTSX since I switched over, definitely available and no issues!
Been digging thru Reddit posts to find info about what you can and cannot buy thru the Choice plan. I got another email from HSA Bank today that says some of the holdings I have at Schwab will not be available in the Choice plan: *While many of the investments in the Schwab Health Savings Brokerage Account (HSBA) program are available in HSA Invest, certain investment types are not offered in HSA Invest. As of Sept. 3, you have holdings in one or more of the investment types not offered in HSA Invest. Certain investments in the below categories aren’t available in HSA Invest. If you have holdings in one of these investment categories call the number on the back of your card or review the list of unavailable investments to find out if your specific holding is impacted. American depositary receipt Mutual funds Common stock Convertible preferred stock Foreign Canadian and ordinaries Limited partnership Mixed unit Preferred stock Real estate investment trust Synthetic preferred (fixed rate capital securities) Unit investment trust (UIT) – exchange-traded Unlisted foreign ordinaries Warrant* Since it specifically called out Mutual Funds I was concerned, but if SWTSX is an option that's a relief. Ill let the rest sit at Schwab.
At my HSA there are no fees for using the Schwab account but you have to move the money their manually. I'd use Schwab's Index funds, like SWTSX which is their total US Market fund.
The Schwab (SWTSX) and Fidelity (FSKAX) versions of VSTAX have lower expense ratios (0.03% and 0.015%, respectively).
1. Why are you using two brokerages and Acorns? We have two brokerage accounts because we each had our own accounts before we got together. We also use Acorns because I had been using it personally for a while and decided to continue adding money to it. 2. How do you allocate funds between Vanguard and Schwab? When we say “the rest,” we mean that we allocate about $100-$200 to both Vanguard and Schwab. In our Vanguard account, we invest in VTSAX, and in our Schwab account, we invest in SWTSX. 3. How much are you contributing to your 401Ks? We both contribute 10% of our income to our 401Ks, and our employers match up to 5%. Currently, I have around $7,000 in my 401K after this year, while my fiancé is just starting her contributions this week. 4. What are your monthly expenses and savings? Our monthly expenses are already accounted for in our budget. After covering all our monthly expenses, we have $5,300 left in savings. 5. What are your incomes? My income is $120,000, and my fiancé’s income is approximately $150,000. We are both new to our jobs. 6. What are your savings and investing goals? Our primary goal is to save for a home within the next 5-7 years while continuing to pay off our loans and save for retirement. If you have any advice, feel free to let me know. We are very new to this
Broad market US index fund with a low fee. At Schwab it would be SWTSX.
Basically. We were something like 96% in the Broad Market (mostly SWTSX) for 34 years. When we started moving 401Ks to IRAs this year, I just tossed mine into MMF until I could setup our DCA routine. I still haven’t done that so now we’re about 30% MMF. When you’re retired with our NW it’s hard to ignite that 5% returns $250,000.
Throw 75% in SWTSX, then the remainder a company that produces a product or service that he uses frequently. Kid plays video games, the Roblox . Fan of Marvel movies? Disney. Virtual Reality or Instagram, META. Burritos? Chipotle. Coffee SBUX. Something that might give him an a reason to be a little bit more intersted, and actually consider the implications when he occasionally sees his company in the news. Or when he goes to Starbucks he can jokingly thank his friends for giving him money.
When I was 16 I had a Schwab custodial account with some stocks that I liked at the time (RACE, CQQQ, AAPL). I was very glad that my father did this for me, primarily because it exposed me to the world of investing at a young age. If I were you, I'd open a Schwab custodial account for him and put half in index funds. I wouldn't recommend SWTSX because it's a mutual fund, choose index ETFs instead (VTI/SCHB). The other half I'd put in something a little more fun, such as individual stocks that he knows. If he uses iPhone maybe he could own some AAPL, if he like Nike shoes he could own some NKE, if he plays Xbox he could own MSFT, if he shops on Amazon he could own AMZN, etc. I lot of people on this subreddit hate investing on individual stocks and only care about index funds, but I truly believe investing in individual stocks is important to understand what these index funds are really made of and besides, it makes it more fun.
75-80% SWTSX + 20-25% SWISX would be my vote
Seconding SWTSX. It's the equivalent of VTSAX but with lower fees.
The cost-per-share on the mutual fund version doesn't really matter—you invest arbitrary dollar amounts, no cash drag. (Consider SWTSX.)
Use a Schwab index fund, like SWTSX. You can invest as little as $1.
Sell and rebuy SWTSX for some tax loss harvesting.
Good idea. Let’s pick, oh let me see, how about the top 5,000? Hmmm 🤔 I wonder if there’s an easy way to do this? Hey, let’s get Chuck to buy them for us. Wonder if he should call it SWTSX?
What you guys think about this? SWTSX 40 SWAGX 20 VXUS 20 SCHD 10 SCHG 10
I will stick to my original strategy. SWTSX 60 SWISX 20 SWAGX 20
Why extra weight on dividends? Everything in SCHD should be included within SWTSX already and dividends aren't free money: the share price drops by the distribution amount.
Yes I got it from Professor G! Originally I was planning on doing all index funds 60 - SWTSX 20 - SWAGX 20 - SWISX
>Is this a good alternative to the 3 fund Portfolio? Not at all. The 3 fund profile uses the categories it does for a reason, only SWTSX of this set fills any of the roles of the 3 fund (the US stock part). US stock and international stocks are for gains. Recent history has hacked the US strongly over international, but that's been plenty of times where that was reversed. Having global coverage can both help increase returns and reduce volatility compared to 100% US (which your proposed portfolio would be) in the long run. Single country risk is also uncompensated risk by definition. Bonds help provide stability and an information asset class. A dividend stock fund absolutely does not fill that role. Did you get this from professor g?
My bias is towards simplicity - fewer funds are often better. You can consolidate the first three into SWTSX, which is a total market fund.
I got this email today as well and switched over. Definitely Choice - lower fees and more flexibility - not sure who would benefit from Select. Your options with Select are very limited (I didn't look very closely, but it was about 20 funds, including a lot of target date funds). With Choice your options are wide open (much like a traditional brokerage) and likely include whatever you were investing in via Schwab. I had all my Schwab funds in SWTSX, which is available with Choice, so this was a quick and painless transition for me.
What about it? Save into a brokerage account. DCA into SWTSX or equivalent on a regular basis. We’ve done it in an automatic account twice a month (5th & 20th). $350 each time. We’ve done this for over 30 years.
I personally use Fidelity as a brokerage - I sort mutual funds by their 10-year performance and their Morning Star rating. I look for expense ratios under 0.5-1% (the smaller the better). Just as an example, not recommended per se --- I have FSELX, SPY, FGRTX, FSKAX, SWTSX. Fidelity offers zero expense funds like FZROX too
SWPPX is Schwab’s S&P 500 mutual fund and has a similar return (“Over the past 10 years, SWTSX has underperformed SWPPX with an annualized return of 12.26%, while SWPPX has yielded a comparatively higher 13.02% annualized return.”) with a 0.02% ER vs SWTSX’s 0.03%. SWPPX does have a slightly larger max drawdown since inception (“The maximum SWTSX drawdown since its inception was -54.60%, roughly equal to the maximum SWPPX drawdown of -55.06%.”), however the March 2020 dip for SWPPX was -26.86% while SWTSX had a -28.29% dip. Quotes’ Source: [https://portfolioslab.com/tools/stock-comparison/SWTSX/SWPPX](https://portfolioslab.com/tools/stock-comparison/SWTSX/SWPPX)
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).
Just keep investing in SWTSX. It takes a lot of time and effort to find the right individual stock. If you actually like to spend that time and effort, then go for it. But if you are looking for the highest return for the lowest amount of effort, then stick with SWTSX.
SWTSX should already include REITs at market cap weight.
S&P 500 is already included within the SWTSX that OP holds.
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.
>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.
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.
Assuming you will retire with a pension in the next decade, you can be somewhat aggressive with your investing. A mutual fund tied to whole stock market (VTSAX or SWTSX) or a sp 500 (VOO, SWPPX). I gave Charles Schwab and Vanguard options, there are others. If you are comfortable with working a brokerage, use their fund to keep the expense ratio low.