SWTSX

Affectionate-Day2743

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.

FoxRoad

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)

Chemical-Fun3692

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)

Chemical-Fun3692

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?

Chemical-Fun3692

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?

er824

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.

er824

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

er824

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.

Chemical-Fun3692

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!

er824

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.

Chemical-Fun3692

I am completely new to investing and I’ve been trying to read as much as possible and ask questions. Please let me know your thoughts on this game plan and if there is anything you would change, take out or add? This is just me going based off notes. I am 100% open to suggestions. Step 1: Contribute 4% employer match to 401k on Fidelity. Step 2: Backdoor Roth IRA - contribute $7,500 and invest in SWTSK (any other mutual fund or ETF I should invest in IRA?) Step 3: Invest in SCHB or SCHX in Taxable account Step 4: Invest in SGOV, USFR, and SWVXX in Taxable account - All for liquid funds Step 5: (Consider investing in SCHD in taxable account?) - Dividend focused ETF. Step 6: (Consider a Sweep account at Fidelity which offers a higher % return in a MMA, not sure why?) Step 7: Is SWPPX and/or SWTSX necessary, and if so, which account and why? Step 8: What about international ETFs and/or Bonds, should I add any to my taxable account and if so which ones? Step 9: Consider QQQ in a taxable account (but would this be redundant if I already will have SCHX or SCHB?)

Chemical-Fun3692

Also, is the QQQ necessary if I choose to invest in SCHX or SCHB which are both broader? I am not sure. Here is my game plan: Please let me know your thoughts and if there is anything you would change, take out or add? This is just me going based off notes from here. I am 100% to suggestions. Step 1: Contribute 4% employer match to 401k on Fidelity. Step 2: Backdoor Roth IRA - contribute $7,500 and invest in SWTSK (any other mutual fund or ETF I should invest in IRA?) Step 3: Invest in SCHB or SCHX in Taxable account Step 4: Invest in SGOV, USFR, and SWVXX in Taxable account - All for liquid funds Step 5: (Consider investing in SCHD in taxable account?) - Dividend focused ETF. Step 6: (Consider a Sweep account at Fidelity which offers a higher % return in a MMA, not sure why?) Step 7: Is SWPPX and/or SWTSX necessary, and if so, which account and why? Step 8: What about international ETFs and/or Bonds, should I add any to my taxable account and if so which ones?

er824

The things that make ETFs slightly more advantageous in a taxable account don’t apply for an IRA. You don’t pay taxes on distributions in an IRA so the tax efficiency advantage is moot and if you want to move brokers you can sell everything in your IRA and move cash without incurring any taxes so the portability advantage is moot. I just find mutual funds more convenient in an IRA. You can buy fractional shares so every penny can be invested, you can rebalance a little easier because you can just do everything by specifying dollars instead of shares, and you can automate your buys. Regarding automatic investments you can set up a regular periodic buy for mutual funds. You still need to get the money in your account, but you can do that via direct deposit of your paycheck or setting up a recurring transfer from another account. Say you set up your direct deposit to put $1k every pay period into your Schwab brokerage. Then you set up a recurring transfer in Schwab to transfer $625 every month to your IRA. Then you can set up a monthly buy of SWTSX (or some other mutual fund) for $625.

er824

Index Fund just refers to a fund that tracks an index instead of having a fund manager pick stocks. An Index fund can come in either ETF or Mutual Fund form. SWPPX, SWTSX, VFIAX, SCHB, SCHX, VTI, VOO are all index funds. There are no fees for buying/selling ETFs at Schwab. There are no fees for buying/selling a wide range of mutual funds at Schwab. Schwab doesn’t allow buying fractional shares of ETFs or setting up automatic periodic purchases of ETFs. They do allow both these things for mutual funds. ETFs tend to be more portable than mutual funds should you decide to change brokers. ETFs are slightly more tax efficient than mutual funds when held in a taxable account. This is because mutual funds are more likely to have capital gains distributions, though they tend to be minimal for index mutual funds so not a major concern. If you are ok not being able to buy fractional shares and auto invest I’d hold ETFs in a taxable account for the increased portability and tax efficiency. I’d use Schwab Index Mutual Funds in an IRA. Especially if you want to set up a monthly contribution and have it automatically get invested. These are minor differences… either ETFs or Mutualfunds are ok in both.

er824

You can buy VOO and VTI at Schwab for no fees. The only downside is they don’t allow purchasing fractional shares of ETFs. Schwab doesn’t have their own S&P 500 ETF, though SCHX is similar. They do have an S&P 500 mutual fund (SWPPX). SCHB is roughly equivalent to VTI. SWTSX is the mutual fund version.

idontgottaclue

Take this with a grain of salt as I’m not an expert, just another person on the internet wanting to learn more about investing to secure my future…I’ve been with Schwab for over a decade. I’ve recently moved my private equities into ETFs to simplify things. My main fund is SCHB, which is a broad market fund that includes large, mid, and small cap companies. This would resemble VTI to the best of my understanding. The only issue I have so far is I always have money leftover after buying these ETFs. You can instead choose a mutual fund such as SWPPX (which tracks the S&P 500) or SWTSX (which is a total stock market index). It’s a dollar a share and you can buy whatever you want without having any leftover cash drag. I use the Schwab funds as I earn a low wage and the Vanguard funds are beyond my budget. I keep SCHB in my Roth and SCHX in my taxable (any leftover change after maxing my Roth goes here). I get a 1099 form every year only for my taxable account for any capital gains I had (selling a stock) or qualified dividends.

NewPhoenixRising

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.

Chemical-Fun3692

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?

buckles66

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.

baseballer213

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.

baseballer213

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.

cdude

Schwab is a great brokerage and bank despite not offering fractional share. Buy SWTSX instead of VTI.

kristop777

SWTSX doesn’t update price until late evening. Reference SCHB for real-time.

Timmy-from-ABQ

I own some ETFs. Interestingly, in this market, my total market etf tends to go up when the Dow, S&P and QQQ go down, and vice versa. I chuckle at the idea of my total market being a hedge! The three are down 1.6-2.3% today. My Schwab SWTSX is up a bit less than 0.1% One would think that the total stock market etf would act like a weighted average of the three.

Cruian

VOO and SWPPX are effectively the same thing in different containers: S&P 500. The S&P 500 is included inside of the US total market (which SWTSX is). You could go with just SWTSX as your US stock allocation. What about international coverage though?

SirGlass

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

SirGlass

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.

micha_allemagne

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/)

Defiant_Departure270

If I was 20 again I would dollar cost average into the very heart of the ever evolving global AI industry with the ETF SMH. Will it correct lower when the markets correct absolutely. Market timing is a fools errand. Next I would dollar cost average into VOO or the SWTSX. Never stop dollar cost averaging. When markets crash I would buy exponentially more not less. I would also dollar cost average about 10% of free cash flow into crypto.

down_by_the_water

I’m up roughly 100% on a combo of swtsx and vti for about $25000 (long term) in my Roth IRA. I’ve since turned on auto-contribute $7k/yr into swppx. Thoughts on selling SWTSX and VTI and buy MSFT (more aggressive) this one time to sit for 20yrs. So basically my Roth IRA will be a combo of the MSFT and SWPPX.

StrangerVegetable831

Put $25 a week into SWTSX or its equivalent at whatever brokerage you like (fidelity or vanguard). Separately, put $25 weekly into a money market (like SNSXX), which will grow into your emergency fund (to cover a year’s worth of expenses if you lose your job or some crazy shit happens. Just leave this pile alone.). Put the rest of your savings into a HYSA (like Amex) and that is what you’ll use for current expenses. Reassess every 6 months or so and increase or decrease what you put in. Hopefully you can keep increasing. In a few years, you’ll have a healthy emergency fund that’s kept pace with inflation, a healthy position in a total market fund (poised to grow for the next 30 plus years), and if you did it right, you’ll have barely noticed.

cfaatwork

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?

SirGlass

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

trailrunner31

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.

SirGlass

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

er824

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.

this_guy_fks

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.

therealjerseytom

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.

Imperial_Toast

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.

Excellent_Brilliant2

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.

6r89udf4x3

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.

MattEdmondsWolf

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?

MattEdmondsWolf

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.

polychris

Anyone gonna buy the dip on SWTSX?

Boss_Os

SWTSX went 7-1 too

Honest-Lavishness239

So then do you think i should sell all of my SWPPX for SWTSX? Is there no benefit for holding SWPPX specifically?

taplar

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.

Honest-Lavishness239

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?

Far-Enthusiasm-5995

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.

DoinIt4DaShorteez

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.

DaemonTargaryen2024

>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?

Yoda411

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.

LintItIs

The bulk of your portfolio should be index funds. VTSAX, FZROX and SWTSX give good diverse exposure.

dooknuckduster

[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

3Cheers4Apathy

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.

SlyTrout

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.

Senpaiheavy

Just set up a schedule to deposit 200 every week into SWTSX/SWPPX.

Own_Grapefruit8839

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.

occams-laser

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.

xiongchiamiov

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.

NoobishFeatures

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

NoobishFeatures

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?

Sweaty-Engine-5915

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%)

No_Witness8826

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.

hotdog-water--

Index funds. Period. SWTSX, SWGLX, SWISX, SFENX, SCHD. Easy

phd_lifter

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.

Cruian

* 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).

coppit

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).

teamhog

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.

Wasteway

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.

Wasteway

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.

Jumpy-Imagination-81

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.

MoonstalkerZ

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?

Cruian

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.

WhyWontThisWork

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)

Leather-Rice5025

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

fgoodwin87

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

SirGlass

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 .

Icy-Bliss

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.

goodDayM

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.

taplar

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.

Jerackino

So you would suggest to allocate 100% of the funds to the brokerage account and then choose like SWISX and SWTSX from there?

Cruian

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.

Technical_Formal72

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.

ProudNativeTexan

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)

Technical_Formal72

It’s not bad! Just realize that SWTSX and SWPPX overlap massively so you’re getting almost the same thing with two different funds.

yerrmomgoes2college

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...

hotdog-water--

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

teamhog

Drop it into a no cost broad market index fund like Schwab’s SWTSX.

D74248

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.

D74248

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.

RjoTTU-bio

I have SWTSX 70% and SWISX 30% in my Roth. I’ll probably keep that ratio until I retire in 30 years.

EcrofLeinad

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.

No_Resident_9206

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.

LabyrinthLayers

$SWTSX

waychanger

I’ve set it to auto-invest in SWTSX since I switched over, definitely available and no issues!

tbfl

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.

er824

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.

harvard378

The Schwab (SWTSX) and Fidelity (FSKAX) versions of VSTAX have lower expense ratios (0.03% and 0.015%, respectively).

trueliving123

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