Schwab Mutual Funds Review


Schwab is one of the nation’s premier discount brokers and provides an impressive portfolio of funds, many without front-end loads and with industry-leading expenses.

I’ve selected five Schwab funds that offer superior returns at low fees to help you maximize the money in your portfolio. Use these in either a DIY portfolio or through an automated advisor service provider.


Schwab Mutual Funds offer investors diverse investment solutions at low fees, making building a diversified portfolio easy and efficient. Schwab’s target date funds also make saving easier; automatically rebalancing as your goals approach provides another convenient means of saving for retirement.

Schwab offers various account types, from individual, joint, and IRA to 529 education savings plans, corporate self-directed brokerage accounts, small business owner 401(k)s, and charitable trust accounts. Schwab provides online trading, research, investment advice, tools, and education.

Schwab offers an easy-to-use trading platform with an array of features. Real-time quotes, customizable charts, and monitoring of your position are available via live chat; customer service representatives can answer questions via phone, email, or live chat if necessary. In addition, Schwab also offers several financial tools and calculators.

Schwab Funds make investing easy for both experienced and novices with its easy Mutual Fund OneSource program offers easy buying, selling, and changing of allocations in one convenient place. Furthermore, this service provides a free daily Market Data Feed for mutual funds, keeping investors abreast of market developments.

Schwab offers online investment services with a diverse selection of active ETFs and index mutual funds to diversify your portfolio quickly. Schwab’s active equity funds aim to add value and growth across asset classes by employing strategies across asset classes. Schwab also offers tax-efficient fixed-income funds and strategies designed to meet retirement goals.

Schwab’s index mutual and exchange-traded funds (ETFs) offer lower fees than actively managed funds, making them ideal for building a well-diversified retirement portfolio. You can use them to spread your savings across domestic and international stocks, bonds, cash, and other assets; their bond and money market funds fill out your fixed-income portion, including tax-exempt options.


Schwab offers competitive fees that make them an attractive option for anyone interested in investing. No commission is charged for stock and ETF trades and $0.65 per options trade; furthermore, its research providers include CFRA and Morningstar and mobile apps enabling investors to monitor portfolios remotely while placing trades from anywhere. Schwab also provides educational resources designed to teach newcomers to investing the basics and how to choose mutual funds.

When purchasing shares in a mutual fund, the transaction is reported and taxed as any other sale due to their investment goals that require selling and repurchasing securities as necessary. You may also owe taxes if the mutual fund generates capital gains or distributions that require tax filings.

If you own a taxable account, an effective way to reduce taxes may be holding a mix of equities and bonds. Bond funds offer protection from short-term market fluctuations while diversifying your overall investment portfolio – they also serve as an attractive way of adding fixed income into your portfolio.

No matter the type of investment account you hold, how much you gain from them depends on your tax bracket and withdrawal timing. For example, money paid into a Roth IRA won’t be subject to taxes upon withdrawal; while earnings from traditional IRAs are taxed as ordinary income.

Schwab’s mutual fund platform provides an array of actively managed equity funds, target date funds that can assist you with planning for retirement, tax-exempt bond funds, and asset allocation funds. Each fund has risks and limitations that should be carefully researched before purchasing. Schwab also receives compensation from fund companies for promoting and selling their funds; this may create conflicts of interest, but its service fees are designed to mitigate those potential conflicts of interest and to serve clients responsibly and ethically.


Schwab is a premier discount brokerage firm with an extensive range of investment services. Schwab mutual funds are ideal for any investor to build an affordable portfolio, from low-cost index and actively managed funds to no-load and no transaction fee funds.

Schwab offers more than investment products; their online trading platform features competitive fees and trade commissions that compare favorably to other discount brokers. When trading options, Schwab charges $0 for stock and ETF trades and $0.65 per contract; these fees compare favorably against others and more than justify the value Schwab brings to your investing experience. They also offer various account types – individuals and joint accounts; retirement savings accounts such as 401(k), 529 education savings accounts, SEP IRAs/solo 401(k)s/solo 401(ks/trust and charitable accounts, among others – to choose from and take care in every investment decision that they offer you the value it adds.

This company has an established track record of offering its clients quality investment advice and innovative solutions, including trading tools, research reports, market commentary, and educational content tailored toward beginner investors. Furthermore, their extensive offering of products and services helps make them one of the leaders in their industry.

Schwab’s low-cost index and exchange-traded funds (ETFs) offer an inexpensive solution for building a diversified retirement portfolio with minimal fees. These passively managed funds typically track an underlying market index; their lower turnover makes them more tax-efficient than actively managed funds.

Schwab’s investment screeners make locating a fund that suits your investing strategy and goals easy. You can filter by Morningstar Ratings, total return rankings, and expense ratios; additionally, they also provide pre-screened lists based on asset allocation and risk tolerance criteria, which can be sorted by category to include their lowest-cost funds.


Schwab is one of the nation’s premier discount brokers, providing an expansive array of investment products such as mutual funds. Schwab also provides its clients various trading tools and resources for efficient investing – an industry-leading Mutual Fund MarketPlace service, ETF portfolio service options that include low fees for diversification portfolios, and mobile research platforms. Schwab ETF offerings are among the lowest cost in their respective industries for maximum cost reduction potential in portfolio diversification strategies.

Schwab’s trading platform is designed with ease of use in mind, offering real-time data streams, an Idea Hub for brainstorming trade ideas, and automated and manual trade support – including stop orders, trailing stops, market if touched (MIT) orders, and call on close (MOO) type orders – while providing investors with an efficient order management process including real-time execution quality reviews and monitoring volatile markets. It can also be accessed on various devices for optimal use.

Schwab brokerage accounts offer numerous advantages to investors of all stripes, such as no transaction fees on most exchange-traded funds and no commissions for stock trades. Furthermore, Schwab Intelligent Portfolios provide no-fee robo advisor services that build and manage an investment portfolio using low-cost ETFs – these portfolios can then be automatically rebalanced while meeting individual goals – but please be aware that its minimum investment threshold of $5,000 exceeds other competitors.

Investors must consider all program requirements, fees, and expenses before investing. Schwab and its investment managers named in this material may receive remuneration from funds participating in Schwab Intelligent Portfolios Solutions services for recordkeeping, shareholder, and administrative duties; please see their disclosure brochure for further information. Schwab Corporation does not offer tax or legal advice and recommends consulting your advisor regarding your situation before investing.