Fund Evaluator:
Schwab CA Tax-Free Bond (SWCAX)
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Best Performing in Muni California Intermediate Over the Last Year
| 3.6% | American Century CA Interm-T T-Fr Bd Y (ACYTX) |
| 3.5% | Vanguard CA Interm-Term Tax-Exempt Adm (VCADX) |
| 3.5% | Vanguard CA Interm-Term Tax-Exempt Inv (VCAIX) |
| 3.4% | American Century CA Interm-T T-Fr Bd Inv (BCITX) |
| 3.3% | Green California Tax-Free Income Inv (CFNTX) |
Fund Details
Schwab CA Tax-Free Bond Overview
Schwab CA Tax-Free Bond (SWCAX) is an actively managed Municipal Bond Muni California Intermediate fund. Schwab Funds launched the fund in 1992.
The investment seeks high current income exempt from federal and California personal income tax that is consistent with capital preservation. To pursue its goal, the fund primarily invests in investment-grade municipal securities - those in the four highest credit rating categories (rated AAA to BBB- or the unrated equivalent as determined by the investment adviser) from California issuers. The fund normally invests at least 80% of its net assets (including, for this purpose, any borrowings for investment purposes) in municipal securities the interest from which is exempt from federal and California personal income tax and federal alternative minimum tax.
About Schwab CA Tax-Free Bond (SWCAX)
There are 2 members of the management team with an average tenure of 7.92 years: John Khodarahmi (2015), Jason Diefenthaler (2021). Management tenure is more important for actively managed funds than passive index funds.
The fund has 2 primary benchmarks: Bloomberg Municipal TR USD index with a weighting of 100% and Bloomberg California Muni 3-15Y TR USD index with a weighting of 100%. Schwab CA Tax-Free Bond has 451 securities in its portfolio. The top 10 holdings constitute 8.8% 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 CA Tax-Free Bond is part of the Fixed Income global asset class and is within the Municipal Bond fund group. Schwab CA Tax-Free Bond has 2.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0%. There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 97.8% (95.8% domestic bond, 2.0% foreign bond and 0.0% convertible bond). Schwab CA Tax-Free Bond has 2.2% of the portfolio in cash.
Assets Under Management
The fund has $601 million in total assets, which is below the $619 million average for the Muni California Intermediate 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.
SWCAX 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 CA Tax-Free Bond expense ratio is below average compared to funds in the Muni California Intermediate category. Schwab CA Tax-Free Bond has an expense ratio of 0.38%, which is 44% 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 CA Tax-Free Bond has a portfolio turnover rate of 35%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 44% for the Muni California Intermediate category.
Recently, in the month of August 2026, Schwab CA Tax-Free Bond returned -0.0%, which earned it a grade of C, as the Muni California Intermediate category had an average return of -0.0%. 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 CA Tax-Free Bond has a trailing yield of 3.24%, which is above the 3.03% category average. The fund normally distributes its income monthly 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 CA Tax-Free Bond Grades
Year to date, the fund has returned -0.2%, 0.3 percentage points worse than the category, which translates into a grade of D. The fund has returned 3.4% over the past year (grade of C), 3.0% over the past three years (grade of D) and 0.5% per year over the past five years (grade of D) and 1.5% per year over the past 10 years (grade of C).
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SWCAX Trailing NAV Total Returns Data as of 8/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| SWCAX Return (NAV) | -0.0% | -1.0% | 3.4% | 3.0% | 0.5% | 1.5% |
| SWCAX Grade | C | D | C | D | D | C |
| +/- Category | 0.0% | -0.2% | 0.1% | -0.1% | -0.1% | 0.0% |
| Muni California Intermediate Avg | -0.0% | -0.9% | 3.3% | 3.1% | 0.6% | 1.4% |
| SWCAX Tax Cost Ratio | na | na | 0.0% | 0.0% | 0.0% | 0.1% |
SWCAX Annual NAV Total ReturnsData as of 8/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| SWCAX Return (NAV) | -0.2% | 3.7% | 2.0% | 5.2% | -7.6% | 0.7% | 4.1% | 6.0% | 1.1% | 4.5% | -0.5% |
| SWCAX Grade | D | D | C | B | D | C | B | C | B | C | D |
| +/- Category | -0.3% | -0.3% | 0.2% | 0.3% | -0.4% | -0.2% | 0.3% | -0.2% | 0.4% | 0.1% | -0.1% |
| Muni California Intermediate Avg | 0.1% | 4.0% | 1.7% | 4.9% | -7.2% | 0.9% | 3.7% | 6.2% | 0.8% | 4.4% | -0.4% |
| Risk Measures | |
| Standard Deviation: | 4.2% |
| Total Risk Index: | 0.34 - Low |
| Category Risk Index: | 0.98 - Average |
| Category Risk Grade: | C (46% Rank) |
| Beta: | 0.73 |
| R-Squared: | 97% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | na |
| Bond Investment Style: | High Quality Moderate Sensitivity |
| Yield: | 3.2% |
| Dividend Distribution: | Monthly |
| Cap Gains Distribution: | Annually |
| Total Assets: | $601 Mil |
| Fund Total Assets: | $ 601 Mil |
| Share Class Type: | Other |
| Portfolio Turnover: | 35% |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 11.1 years | |||
| Average Tenure: 7.9 years | |||
| Managers (Year): Khodarahmi John (2015), Diefenthaler Jason (2021) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 451 |
| % in Top 10 Holdings: | 8.8% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 2.0% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 95.8% |
| Foreign Bond: | 2.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 2.2% |
Purchase Information
| Fund Family: | Schwab Funds |
| Phone Number: | 877-824-5615 |
| Website: | www.schwab.com |
| Status: | Open |
| Inception Date: | February 24, 1992 |
| Min. Initial Purchase: | $ 0 |
| Min. Initial IRA Purchase: | $ 0 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | na |
Expenses and Fees | |
| Expense Ratio (%): | 0.38% ( Rating : Below Avg ) |
| Category Average Expense Ratio (%): | 0.67% |
| Share Class: | Schwab CA Tax-Free Bond |
| Min. Subsequent Purchase: | $ 0 |
| Min. Subsequent IRA Purchase: | $ 0 |
