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Schwab ® US Mid-Cap Index Overview

Schwab ® US Mid-Cap Index (SWMCX) is a passively managed U.S. Equity Mid-Cap Blend fund. Schwab Funds launched the fund in 2017.

The investment seeks to track the performance of the Russell Midcap® Index. that measures the total return of mid capitalization U.S. stocks. To pursue its goal, the fund generally invests in securities that are included in the Russell Midcap® Index. It is the fund's policy that under normal circumstances it will invest at least 90% of its net assets (including, for this purpose, any borrowings for investment purposes) in securities included in the index. The Russell Midcap Index measures the performance of the mid-cap segment of the U.S. equity universe.

About Schwab ® US Mid-Cap Index (SWMCX)

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 Mid Cap TR USD index with a weighting of 100%. Schwab ® US Mid-Cap Index has 792 securities in its portfolio. The top 10 holdings constitute 8.9% 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 ® US Mid-Cap Index is part of the Equity global asset class and is within the U.S. Equity fund group. Schwab ® US Mid-Cap Index has 1.7% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 98.0%. There is 1.7% 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 Mid-Cap Index has 0.3% of the portfolio in cash.

Assets Under Management

The fund has $2 billion in total assets, which is above the $1 billion average for the Mid-Cap Blend 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.

SWMCX 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 Mid-Cap Index expense ratio is low compared to funds in the Mid-Cap Blend category. Schwab ® US Mid-Cap Index 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 Mid-Cap Index has a portfolio turnover rate of 11%, indicating that holds its assets around 0.1 years. By way of comparison, the average portfolio turnover is 51% for the Mid-Cap Blend category.

Recently, in the month of June 2026, Schwab ® US Mid-Cap Index returned 3.1%, which earned it a grade of D, as the Mid-Cap Blend category had an average return of 4.1%. 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 Mid-Cap Index has a trailing yield of 1.21%, which is above the 0.47% 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 ® US Mid-Cap Index Grades

Year to date, the fund has returned 15.3%, 0.0 percentage points worse than the category, which translates into a grade of C. The fund has returned 21.7% over the past year (grade of C), 16.5% over the past three years (grade of B) and 8.5% per year over the past five years (grade of C).

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