Fund Evaluator:

Schwab MarketTrack Balanced Overview

Schwab MarketTrack Balanced (SWBGX) is an actively managed Allocation Moderate Allocation fund. Schwab Funds launched the fund in 1995.

The investment seeks both capital growth and income. To pursue its goal, the fund maintains a defined asset allocation. The fund's target allocation includes bond, stock and cash investments. Its allocation is weighted toward stock investments, while including substantial bond investments in seeking to add income and reduce the fund's volatility. The fund seeks to remain close to the target allocations of approximately 60% equity, 36% fixed income and 4% cash and cash equivalents (including money market funds).

About Schwab MarketTrack Balanced (SWBGX)

There are 2 members of the management team with an average tenure of 11.02 years: Zifan Tang (2012), Patrick Kwok (2019). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: S&P 500 (TR) (1970) index with a weighting of 100% and Bloomberg US Agg Bond TR USD index with a weighting of 100%. Schwab MarketTrack Balanced has 15 securities in its portfolio. The top 10 holdings constitute 91.2% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

Schwab MarketTrack Balanced is part of the Allocation global asset class and is within the Allocation fund group. Schwab MarketTrack Balanced has 20.2% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 42.1%. There is 17.5% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 35.6% (33.0% domestic bond, 2.7% foreign bond and 0.0% convertible bond). Schwab MarketTrack Balanced has 4.7% of the portfolio in cash.

Assets Under Management

The fund has $658 million in total assets, which is below the $2 billion average for the Moderate Allocation category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

SWBGX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Schwab MarketTrack Balanced expense ratio is average compared to funds in the Moderate Allocation category. Schwab MarketTrack Balanced has an expense ratio of 0.48%, which is 52% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Schwab MarketTrack Balanced has a portfolio turnover rate of 21%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 52% for the Moderate Allocation category.

Recently, in the month of August 2026, Schwab MarketTrack Balanced returned 1.4%, which earned it a grade of C, as the Moderate Allocation category had an average return of 1.4%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

Schwab MarketTrack Balanced has a trailing yield of 2.22%, which is above the 1.95% category average. The fund normally distributes its income annually and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Schwab MarketTrack Balanced Grades

Year to date, the fund has returned 8.5%, 0.6 percentage points better than the category, which translates into a grade of B. The fund has returned 13.2% over the past year (grade of C), 12.9% over the past three years (grade of C) and 6.3% per year over the past five years (grade of D) and 7.9% per year over the past 10 years (grade of D).

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