Fund Evaluator:
Schwab Opportunistic Municipal Bond (SWHYX)
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Best Performing in Muni National Long Over the Last Year
| 7.5% | Victory Tax Exempt Long-Term (USTEX) |
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| 7.2% | Vanguard High-Yield Tax-Exempt (VWAHX) |
| 7.1% | Thrivent Municipal Bond S (TMBIX) |
| 7.0% | T. Rowe Price Core Municipal Bond (PRTAX) |
Fund Details
Schwab Opportunistic Municipal Bond Overview
Schwab Opportunistic Municipal Bond (SWHYX) is an actively managed Municipal Bond Muni National Long fund. Schwab Funds launched the fund in 2014.
The investment seeks to generate interest income that is not subject to federal income tax. Under normal market conditions, the fund invests at least 80% of its net assets (plus any borrowings for investment purposes) in municipal securities that pay interest not subject to regular federal income tax. It also invests in non-governmental municipal issuers. The fund primarily invests in general obligation and revenue obligation securities. The fund may from time to time invest temporarily up to 20% of its net assets in taxable securities of at least comparable quality to the municipal securities in which the fund invests.
About Schwab Opportunistic Municipal Bond (SWHYX)
There are 2 members of the management team with an average tenure of 8.48 years: John Khodarahmi (2021), Jason Diefenthaler (2014). Management tenure is more important for actively managed funds than passive index funds.
The fund has 1 primary benchmark: Bloomberg Municipal TR USD index with a weighting of 100%. Schwab Opportunistic Municipal Bond has 355 securities in its portfolio. The top 10 holdings constitute 6.5% 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 Opportunistic Municipal Bond is part of the Fixed Income global asset class and is within the Municipal Bond fund group. Schwab Opportunistic Municipal Bond has 1.0% 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 98.8% (97.8% domestic bond, 1.0% foreign bond and 0.0% convertible bond). Schwab Opportunistic Municipal Bond has 1.2% of the portfolio in cash.
Assets Under Management
The fund has $96 million in total assets, which is below the $1 billion average for the Muni National Long 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.
SWHYX 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 Opportunistic Municipal Bond expense ratio is average compared to funds in the Muni National Long category. Schwab Opportunistic Municipal Bond has an expense ratio of 0.50%, which is 36% lower than its category average, making the fund expense ratio grade a B. 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 Opportunistic Municipal Bond has a portfolio turnover rate of 39%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 38% for the Muni National Long category.
Recently, in the month of July 2026, Schwab Opportunistic Municipal Bond returned -2.0%, which earned it a grade of F, as the Muni National Long category had an average return of -1.9%. 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 Opportunistic Municipal Bond has a trailing yield of 3.66%, which is below the 3.72% 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 Opportunistic Municipal Bond Grades
Year to date, the fund has returned 0.5%, 0.3 percentage points worse than the category, which translates into a grade of D. The fund has returned 6.2% over the past year (grade of C), 3.2% over the past three years (grade of C) and 0.1% per year over the past five years (grade of C) and 1.7% per year over the past 10 years (grade of C).
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SWHYX Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| SWHYX Return (NAV) | -2.0% | -0.7% | 6.2% | 3.2% | 0.1% | 1.7% |
| SWHYX Grade | F | F | C | C | C | C |
| +/- Category | -0.2% | -0.4% | -0.1% | -0.1% | 0.1% | -0.1% |
| Muni National Long Avg | -1.9% | -0.3% | 6.3% | 3.2% | 0.0% | 1.8% |
| SWHYX Tax Cost Ratio | na | na | 0.0% | 0.0% | 0.0% | 0.1% |
SWHYX Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| SWHYX Return (NAV) | 0.5% | 3.0% | 1.9% | 9.2% | -12.8% | 2.5% | 0.3% | 9.1% | 1.1% | 8.3% | 1.6% |
| SWHYX Grade | D | C | D | A | D | C | F | A | B | A | A |
| +/- Category | -0.3% | -0.0% | -0.6% | 2.4% | -1.2% | -0.4% | -4.5% | 1.1% | 0.4% | 2.4% | 1.4% |
| Muni National Long Avg | 0.9% | 3.0% | 2.5% | 6.8% | -11.6% | 2.8% | 4.7% | 8.1% | 0.7% | 5.8% | 0.2% |
| Risk Measures | |
| Standard Deviation: | 6.4% |
| Total Risk Index: | 0.52 - Below Average |
| Category Risk Index: | 0.98 - Average |
| Category Risk Grade: | C (55% Rank) |
| Beta: | 1.10 |
| R-Squared: | 97% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | na |
| Bond Investment Style: | High Quality Extensive Sensitivity |
| Yield: | 3.7% |
| Dividend Distribution: | Monthly |
| Cap Gains Distribution: | Annually |
| Total Assets: | $96 Mil |
| Fund Total Assets: | $ 96 Mil |
| Share Class Type: | Other |
| Portfolio Turnover: | 39% |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 12.3 years | |||
| Average Tenure: 8.5 years | |||
| Managers (Year): Diefenthaler Jason (2014), Khodarahmi John (2021) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 355 |
| % in Top 10 Holdings: | 6.5% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 1.0% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 97.8% |
| Foreign Bond: | 1.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 1.2% |
Purchase Information
| Fund Family: | Schwab Funds |
| Phone Number: | 877-824-5615 |
| Website: | www.schwab.com |
| Status: | Open |
| Inception Date: | March 31, 2014 |
| 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 (%): | 0.50% ( Rating : Avg ) |
| Category Average Expense Ratio (%): | 0.78% |
| Share Class: | Schwab Opportunistic Municipal Bond |
| Min. Subsequent Purchase: | $ 0 |
| Min. Subsequent IRA Purchase: | $ 0 |
