For an extensive selection of index funds, look no further than Schwab. We provide experienced management and some of the lowest minimums and operating expense ratios available. Choose from our traditional cap-weighted funds or our Fundamental Index* funds.
Why invest in equity index funds?
Index funds are mutual funds that track the performance of a specific index, such as the S&P 500® Index. Because portfolio decisions are rules based and transactions are infrequent, expenses tend to be much lower than those of actively managed mutual funds. Index funds offer long-term growth potential and reduced risk through market diversification.
What Schwab offers.
Schwab makes it easy to invest in a low-cost, diversified index fund portfolio that reflects your goals.
- Low costs. Our operating expense ratios (OERs) are some of the lowest in the industry.
- Low investment minimums. You can start investing in our competitively priced funds with as little as $100 if you establish an automatic investment of $100 or more.
- Experienced management. Charles Schwab Investment Management is a leader in index fund management.
- Exclusive offerings. Charles Schwab Investment Management has an exclusive license to broadly offer investment companies tracking certain of the Russell Fundamental Index® Series.
Compare your options.
We offer traditional cap-weighted index funds as well as our exclusive Fundamental Index funds. Both types of index funds offer lower turnover, low fees and expenses, and full market participation. There are a few key differences, though:
|Traditional Cap-Weighted Methodology||Fundamental Index Methodology|
||Weights companies in an index based on fundamental measures of company size:
This approach seeks to weight companies based on economic size, rather than how the market is currently valuing them.
|Symbol||Description||Investment Strategy||Fund1||Industry Average2|
|SWPPX||Schwab® S&P 500 Index||Seeks to track the total return of the S&P 500® Index by investing in leading U.S. publicly traded companies from a broad range of industries.||0.09%||0.40%|
|SWTSX||Schwab Total Stock Market Index®||Seeks to track the total return of the Dow Jones U.S. Total Stock Market Index (SM), which includes all U.S. headquartered equity securities with readily available price data.||0.09%||0.40%|
|SNXFX||Schwab 1000 Index® Fund||Seeks to track the total return of the Schwab 1000 Index® by investing in the stocks of the 1,000 largest publicly traded companies in the United States.||0.29%3||0.40%|
|SWSSX||Schwab Small Cap Index Fund®||Seeks to track the total return of the Russell 2000® Index. This index includes the stocks of the 2,000 smallest companies listed in the Russell 3000® Index, that contains the 3,000 largest publicly traded companies in the U.S.||0.17%3||0.53%|
|SWISX||Schwab International Index Fund®||Seeks to track the total return of the MSCI EAFE Index, which includes stocks from the developed markets outside North America – Europe, Australasia, and the Far East.||0.19%||0.47%|
Take the next step.
Open an Account or call 866-855-5637.
1. "Net operating expenses" as stated in the prospectus for each fund, 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 fund's Board of Trustees. The limitation excludes as applicable, interest, taxes, and certain non-routine expenses, which may result in a fund incurring net operating expenses above the limitation.
2. The Industry Average is the average expense ratio of all true no-load index mutual funds in the same Morningstar Category as the Schwab Equity Index Fund it is being compared to. Source: Morningstar as of 8/31/2013.
3. As of 7/1/2014, the expense information shown has been restated to reflect the removal of expenses incurred indirectly by the fund through its investment in business development companies ("BDCs"). The fund's benchmark index no longer includes BDCs.
Investors should consider carefully information contained in the prospectus, including investment objectives, risks, charges, and expenses. You can view, download, and print a prospectus. Please read the prospectus carefully before investing.
Investment value will fluctuate, and shares, when redeemed, may be worth more or less than their original cost.
The S&P 500 is an index of 500 widely traded stocks. It is not an investment product available for purchase.
Charles Schwab & Co., Inc. (the distributor of Schwab Funds®) and Charles Schwab Investment Management, Inc. (the investment advisor) are affiliates of The Charles Schwab Corporation.