Schwab Monthly Income Funds
Looking for monthly income and the potential to grow your investment for future income needs? Schwab® Monthly Income Funds offer three diversified solutions. Just choose the fund that best matches your goals for current income and long-term growth potential.
Choose your desired payout and growth potential.
Schwab Monthly Income Fund - Maximum Payout: A target payout higher than the Enhanced Payout Fund with the most conservative level of growth potential.
Schwab Monthly Income - Enhanced Payout: A target payout higher than the Moderate Payout Fund with an average level of growth potential.
Schwab Monthly Income - Moderate Payout: A target payout with the highest level of growth potential compared to other Schwab Monthly Income Funds.
Schwab Monthly Income Funds Estimated Allocation Mix2
|Equity||Fixed Income||Cash and Cash Equivalents|
|Schwab Monthly Income Fund - Moderate Payout||20-60%||40-70%||0-10%|
|Schwab Monthly Income Fund - Enhanced Payout||10-40%||50-90%||0-12%|
|Schwab Monthly Income Fund - Maximum Payout||0-25%||60-100%||0-15%|
A fund's actual annual payout may vary from one year to the next and over time due to on several factors, including, without limitation, the interest rate environment, the performance of the financial markets in which the fund invests, the allocation of fund assets across different asset classes and investments, and the amount and timing of prior distributions by the fund. Although, a fund has its own distinct asset allocation strategy that is designed to accommodate the fund's targeted annual payout percentage while taking into account the fund's specific risk tolerances and desired level of capital appreciation, the fund's actual annual payout could be higher or lower.
The Funds intend to allocate investments among various asset classes such as equity, fixed income and cash and cash equivalents (including money market funds). Each of the Funds' target asset allocation is not fixed, and each of the Funds have the flexibility to move within their asset allocation ranges (under normal market conditions) at the discretion of the investment adviser. Market appreciation or depreciation may cause the Funds to temporarily be outside their ranges.
The Schwab Monthly Income Funds with a higher percent of equity investments generally have the greatest opportunity for potential growth. With this opportunity comes increased risk and the likelihood for fluctuation in net asset value. Actual asset allocation may vary over time depending on market conditions.
|Fund||Anticipated Annual Payout in Low Interest Rate Environment||Anticipated Annual Payout in High Interest Rate Environment|
|Schwab Monthly Income Fund - Moderate Payout||1-3%||3-6%|
|Schwab Monthly Income Fund - Enhanced Payout||1-4%||4-7%|
|Schwab Monthly Income Fund - Maximum Payout||1-5%||5-8%|
Yield targets are based on anticipated market returns. Actual returns may vary based on market conditions. Payout ranges mentioned are not actual rates of return or yields, but simply a target payout percentage set by the advisor. For distribution information, please visit www.schwab.com/monthlyincome or call 800-548-5589.
Get more for less.
All Schwab Monthly Income Funds have a $100 minimum and are competitively priced.
|Fund||Minimum Investment||Net Expense Ratio1|
|Schwab Monthly Income Fund - Moderate Payout (SWJRX)||$100||0.66%|
|Schwab Monthly Income Fund - Enhanced Payout (SWKRX)||$100||0.56%|
|Schwab Monthly Income Fund - Maximum Payout (SWLRX)||$100||0.45%|
Take the next step.
Open an account to get monthly income funds that are right for you and plan for your future income needs.
Open an Account or call 800-548-5589.
1. The investment adviser and its affiliates have agreed to limit the total annual fund operating expenses (excluding interest, taxes and certain non-routine expenses) of the fund to 0.00% for so long as the investment adviser serves as the adviser to the fund. This agreement may only be amended or terminated with the approval of the portfolio's Board of Trustees. This agreement is limited to the fund's direct operating expenses and does not apply to acquired fund fees and expenses.
2. Each Fund's target asset allocation is not fixed, and each fund has the flexibility to move within the asset allocation ranges set forth below at the discretion of the investment adviser:
Investors should consider carefully information contained in the prospectus, including investment objectives, risks, charges, and expenses. You can request a prospectus by calling 800-435-4000. Please read the prospectus carefully before investing.
Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed-income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications, and other factors. All of these factors can subject the funds to increased loss of principal.
Charles Schwab Investment Management, Inc. ("CSIM"), the investment adviser for Schwab's proprietary funds, and Charles Schwab & Co., Inc. ("Schwab"), the distributor for Schwab Funds, are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation.