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Taking the Long View

In a dynamic economy such as ours, growth happens gradually: day by day, year by year, with some bumps along the way. But when we look back over the past few decades, we can see just how far we’ve come. The results are encouraging for people like me who believe in long-term investing.

For example, take a look at the Schwab 1000 Index, designed to track the 1,000 largest publicly traded companies in the U.S. Since I launched it in 1991, its average annualized return has been 10.06%. Put another way, a hypothetical $10,000 investment in the Schwab 1000 Index in 1991, left untouched, would have been worth more than $129,000 by the end of 2017. For more on its track record, read our new publication, The Schwab 1000 Index: 26 Years of Battle-Tested Results.

Index investing is just one approach, of course. If you have the time, interest and discipline to research and build a diversified portfolio of individual stocks—and to hold fast when things get bumpy—by all means, do so. But for the majority of us, often the simplest solution is the right one. And for my money, there are few simpler solutions than tracking an index of America’s largest companies—the growth engines at the heart of our economy.

 

Charles R. Schwab

Founder & Chairman

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Important Disclosures

For mutual funds and ETFs, investors should carefully consider information contained in the prospectus, including investment objectives, risks, charges, and expenses. You can request a prospectus by visiting Schwab.com or calling Schwab at 800-435-4000. Please read the prospectus carefully before investing.

Source: Schwab Center for Financial Research with data provided by Morningstar Direct. Data as of 12/31/2017. Performance shown is based on a hypothetical investment on 04/02/1991, with dividends and capital gains reinvested. Indexes are unmanaged, do not incur management fees, costs and expenses, and cannot be invested in directly. For illustrative purposes only. Past performance is not a guarantee of future results.

The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.

All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.

Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.

Indexes are unmanaged, do not incur management fees, costs and expenses, and cannot be invested in directly.

The Schwab 1000 Index® represents the performance of the largest 1000 publicly traded companies in the United States. As a result of corporate actions, the index may comprise more or less than 1000 securities.

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