Investment ideas for your portfolio
Here are some ideas to help you invest in target date funds.
A target date fund seeks to provide a convenient, all-in-one portfolio solution with a diverse asset mix of equity, fixed income, and cash equivalents that progressively becomes more conservative as the target date approaches. These funds offer a convenient, professionally managed, and diversified approach to saving for a future goal.
To select the target date fund that might work for you, simply match the fund's target date as closely as possible to the year when you think you'll reach your goal—like when your child is heading to college or when you'll retire. Here are a few examples:
- If your daughter is heading to college 16 years from now, that's year 2042. You might consider a Target 2040 fund or Target 2045 fund—the target dates are both close to when you'll need funds to start paying for college.
- If you're saving for retirement, consider selecting a target date fund close to your retirement year. If you're unsure when you'll retire, consider using age 65 as a rule of thumb. For example, if you're currently age 32 and you'll retire at age 65, your potential retirement year is 2059. You might consider a target date fund with a similar date, like a Target 2060 fund.
Depending on your goals and how your portfolio is currently invested, here are some target date fund options to consider:
Schwab target date funds
- Schwab Target 2070 Fund (SWRRX)
- Schwab Target 2065 Fund (SWQRX)
- Schwab Target 2060 Fund (SWPRX)
- Schwab Target 2055 Fund (SWORX)
- Schwab Target 2050 Fund (SWNRX)
- Schwab Target 2045 Fund (SWMRX)
- Schwab Target 2040 Fund (SWERX)
- Schwab Target 2035 Fund (SWIRX)
- Schwab Target 2030 Fund (SWDRX)
- Schwab Target 2025 Fund (SWHRX)
- Schwab Target 2020 Fund (SWCRX)
- Schwab Target 2015 Fund (SWGRX)
- Schwab Target 2010 Fund (SWBRX)
Schwab target date index funds
- Schwab Target 2070 Index Fund (SWYPX)
- Schwab Target 2065 Index Fund (SWYOX)
- Schwab Target 2060 Index Fund (SWYNX)
- Schwab Target 2055 Index Fund (SWYJX)
- Schwab Target 2050 Index Fund (SWYMX)
- Schwab Target 2045 Index Fund (SWYHX)
- Schwab Target 2040 Index Fund (SWYGX)
- Schwab Target 2035 Index Fund (SWYFX)
- Schwab Target 2030 Index Fund (SWYEX)
- Schwab Target 2025 Index Fund (SWYDX)
- Schwab Target 2020 Index Fund (SWYLX)
- Schwab Target 2015 Index Fund (SWYBX)
- Schwab Target 2010 Index Fund (SWYAX)
Here are some ideas to help you invest in stock index funds.
Stock index funds are a smart, straightforward way to pursue long-term growth without the stress of picking individual winners. Essentially, these funds aim to mirror the performance of a specific market benchmark—like the Schwab 1000 Index®—by holding all or a representative sample of the securities within that index. Because they are passively managed, they typically come with much lower fees than actively managed funds, which means more of your money stays invested and working for you. They offer built-in diversification, helping to spread your risk across dozens or even hundreds of companies.
Two popular types of stock indexes are market cap-weighted indexes and Fundamental Indexes. A market cap-weighted index is a stock market index where individual constituents are weighted according to their total market capitalization (market value). Fundamental Index is a strategy built on principles of contrarian investing in that it selects and weights stocks based on objective fundamental measures of company size rather than stock price.
Depending on your goals and how your portfolio is currently invested, here are some stock index fund options to consider:
Schwab U.S. stock index funds that track a market cap-weighted index
Schwab U.S. stock index funds that track a Fundamental Index
Schwab U.S. dividend equity index funds
Here are some ideas to help you invest in bonds.
Bonds play a vital role in most portfolios, offering investors the potential for income and diversification. Bond funds are often classified according to the average duration of their holdings, which is a measure of interest rate sensitivity. If your goal is to help reduce risk to your investment principal, consider short-term funds. If your goal is to diversify your portfolio and add income, consider short- and intermediate-term funds. If your goal is to maximize interest income, long-term funds may be a good fit.
Depending on your goals and how your portfolio is currently invested, here are some bond fund options to consider:
Schwab long-term bond fund
Here are some ideas to help you invest in international stocks.
International stocks offer diversification benefits, attractive valuations, and strong growth potential. They also have unique risks, such as currency fluctuations and geopolitical risks. If you're thinking of investing internationally, you may find it easier and less risky to go with a diversified exchange-traded fund (ETF) or mutual fund rather than selecting individual stocks yourself.
International funds are commonly focused on two broad types of countries—developed markets and emerging markets. Developed markets include countries with well-developed infrastructures and stable economic and financial systems like Japan, the United Kingdom, and Germany. Emerging markets include countries experiencing economic and industrial growth with developing infrastructures and economic systems.
Depending on your goals, risk tolerance, or investing timeline, here are some choices to consider:
Schwab international developed markets stock funds
Here are some ideas to help you build a blended 60/40 strategy.
Moving your portfolio's cash investments over to a blended 60/40 strategy of stocks and bonds can be a simple, straightforward process. Schwab offers a wide range of options—including exchange-traded funds (ETFs), mutual funds, and even separately managed accounts—to help you build the strategy that fits you best.
Depending on your goals, risk tolerance, or investing timeline, here are some choices to consider: