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
What You Can Do Next
- Learn more about the Schwab 1000 Index® Fund’s 26-year track record.
- Invest in America’s largest 1000 stocks—for less than half the cost of Vanguard—with the Schwab 1000 Index ETF.
- Call our investment professionals at 800-355-2162, or talk to your Schwab Financial Consultant about indexing and diversification strategies.