Fund Evaluator:

Schwab Large-Cap Growth Overview

Schwab Large-Cap Growth (SWLSX) is an actively managed U.S. Equity Large Growth fund. Schwab Funds launched the fund in 2005.

The investment seeks long-term capital growth. To pursue its investment objective, the fund invests primarily in U.S. common stocks. Under normal circumstances, it invests at least 80% of its net assets (including, for this purpose, any borrowings for investment purposes) in large-cap stocks of U.S. companies. The fund may invest in derivatives, principally futures contracts, primarily to seek returns on the fund’s otherwise uninvested cash assets. It may invest in exchange-traded funds (ETFs) and stocks of real estate investment trusts (REITs).

About Schwab Large-Cap Growth (SWLSX)

There are 3 members of the management team with an average tenure of 6.37 years: Holly Emerson (2017), Bill McMahon (2021), Gretchen Novak (2021). 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 Large-Cap Growth has 58 securities in its portfolio. The top 10 holdings constitute 58.0% 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 Large-Cap Growth is part of the Equity global asset class and is within the U.S. Equity fund group. Schwab Large-Cap Growth has 0.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 99.2%. 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 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Schwab Large-Cap Growth has 0.8% of the portfolio in cash.

Assets Under Management

The fund has $624 million in total assets, which is below 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.

SWLSX 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 Large-Cap Growth expense ratio is high compared to funds in the Large Growth category. Schwab Large-Cap Growth has an expense ratio of 0.99%, which is 3% higher than its category average, making the fund expense ratio grade a D. 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 Large-Cap Growth has a portfolio turnover rate of 22%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 54% for the Large Growth category.

Recently, in the month of June 2026, Schwab Large-Cap Growth returned -1.0%, which earned it a grade of B, 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 Large-Cap Growth has a trailing yield of 0.00%, which is below the 0.06% 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 Large-Cap Growth Grades

Year to date, the fund has returned 9.4%, 2.3 percentage points better than the category, which translates into a grade of B. The fund has returned 21.3% over the past year (grade of A), 22.5% over the past three years (grade of B) and 14.4% per year over the past five years (grade of A) and 16.8% per year over the past 10 years (grade of B).

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