Fund Evaluator:

Schwab ® US Large-Cap Growth Idx Overview

Schwab ® US Large-Cap Growth Idx (SWLGX) is a passively managed U.S. Equity Large Growth fund. Schwab Funds launched the fund in 2017.

The investment seeks to track the performance of the Russell 1000 Growth Index that measures the total return of large capitalization U.S. growth stocks. To pursue its goal, the fund generally invests in stocks that are included in the Russell 1000® Growth Index. It is the fund's policy that under normal circumstances it will invest at least 90% of its net assets in securities included in the index. The Russell 1000 Growth Index measures the performance of the large-cap growth segment of the U.S. equity universe. It is a subset of the Russell 1000® Index, representing growth issuers in the Russell 1000 Index. It is non-diversified.

About Schwab ® US Large-Cap Growth Idx (SWLGX)

There are 4 members of the management team with an average tenure of 6.94 years: Christopher Bliss (2017), Ferian Juwono (2017), Jeremy Brown (2019), Agnes Zau (2023). 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 Russell 1000 Growth TR USD index with a weighting of 100%. Schwab ® US Large-Cap Growth Idx has 386 securities in its portfolio. The top 10 holdings constitute 60.7% of the fund’s assets. The fund meets the SEC requirement of being classified as a nondiversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

Schwab ® US Large-Cap Growth Idx is part of the Equity global asset class and is within the U.S. Equity fund group. Schwab ® US Large-Cap Growth Idx has 0.2% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 99.4%. There is 0.2% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Schwab ® US Large-Cap Growth Idx has 0.4% of the portfolio in cash.

Assets Under Management

The fund has $4 billion in total assets, which is above the $2 billion average for the Large Growth 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.

SWLGX 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 ® US Large-Cap Growth Idx expense ratio is low compared to funds in the Large Growth category. Schwab ® US Large-Cap Growth Idx has an expense ratio of 0.04%, which is 96% 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 ® US Large-Cap Growth Idx has a portfolio turnover rate of 16%, indicating that holds its assets around 0.1 years. By way of comparison, the average portfolio turnover is 54% for the Large Growth category.

Recently, in the month of June 2026, Schwab ® US Large-Cap Growth Idx returned -2.7%, which earned it a grade of D, as the Large Growth category had an average return of -1.3%. 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 ® US Large-Cap Growth Idx has a trailing yield of 0.43%, which is above the 0.06% category average. The fund normally distributes its income 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 ® US Large-Cap Growth Idx Grades

Year to date, the fund has returned 5.3%, 1.8 percentage points worse than the category, which translates into a grade of C. The fund has returned 17.7% over the past year (grade of B), 22.6% over the past three years (grade of B) and 13.7% per year over the past five years (grade of A).

For more mutual fund grades, analysis and screening tools to help your investment discovery, join AAII for a $2, full-access trial. Learn more here: https://invest.aaii.com/membership.

Otherwise, for more information about Schwab ® US Large-Cap Growth Idx, including its riskiness, submit your email to unlock the rest of the article.