Fund Evaluator:
Schwab Tax-Free Bond (SWNTX)
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Best Performing in Muni National Interm Over the Last Year
| 8.4% | Sit Tax-Free Income (SNTIX) |
| 5.6% | Putnam Strategic Intermediate Muncpl Y (PAMYX) |
| 5.5% | Goldman Sachs Dynamic Municipal Inc Inv (GUIRX) |
| 5.3% | Victory Tax Exempt Intermediate-Term (USATX) |
| 5.2% | Vanguard Tax-Exempt Bond Index Admiral (VTEAX) |
Fund Details
Schwab Tax-Free Bond Overview
Schwab Tax-Free Bond (SWNTX) is an actively managed Municipal Bond Muni National Interm fund. Schwab Funds launched the fund in 1992.
The investment seeks high current income that is exempt from federal income tax, 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). It 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 income tax, including the federal alternative minimum tax (AMT).
About Schwab Tax-Free Bond (SWNTX)
There are 2 members of the management team with an average tenure of 7.83 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 Municipal 3-15Y Blend TR USD index with a weighting of 100%. Schwab Tax-Free Bond has 457 securities in its portfolio. The top 10 holdings constitute 7.2% 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 Tax-Free Bond is part of the Fixed Income global asset class and is within the Municipal Bond fund group. Schwab Tax-Free 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 99.2% (98.2% domestic bond, 1.0% foreign bond and 0.0% convertible bond). Schwab Tax-Free Bond has 0.8% of the portfolio in cash.
Assets Under Management
The fund has $622 million in total assets, which is below the $1 billion average for the Muni National Interm 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.
SWNTX 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 Tax-Free Bond expense ratio is below average compared to funds in the Muni National Interm category. Schwab 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 Tax-Free Bond has a portfolio turnover rate of 49%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 39% for the Muni National Interm category.
Recently, in the month of July 2026, Schwab Tax-Free Bond returned -1.7%, which earned it a grade of D, as the Muni National Interm category had an average return of -1.6%. 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 Tax-Free Bond has a trailing yield of 3.23%, which is below the 3.27% 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 Tax-Free Bond Grades
Year to date, the fund has returned 0.2%, 0.2 percentage points worse than the category, which translates into a grade of D. The fund has returned 4.8% over the past year (grade of B), 2.9% over the past three years (grade of D) and 0.4% per year over the past five years (grade of D) and 1.6% per year over the past 10 years (grade of D).
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SWNTX 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 |
|
| SWNTX Return (NAV) | -1.7% | -0.6% | 4.8% | 2.9% | 0.4% | 1.6% |
| SWNTX Grade | D | D | B | D | D | D |
| +/- Category | -0.1% | -0.1% | 0.2% | -0.3% | -0.2% | -0.1% |
| Muni National Interm Avg | -1.6% | -0.5% | 4.6% | 3.2% | 0.6% | 1.7% |
| SWNTX Tax Cost Ratio | na | na | 0.3% | 0.1% | 0.1% | 0.1% |
SWNTX Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| SWNTX Return (NAV) | 0.2% | 3.9% | 1.8% | 5.7% | -8.0% | 0.8% | 4.6% | 6.5% | 0.9% | 4.4% | -0.4% |
| SWNTX Grade | D | D | C | C | C | D | B | C | C | D | C |
| +/- Category | -0.2% | -0.3% | -0.2% | -0.1% | 0.2% | -0.9% | 0.3% | -0.1% | 0.1% | -0.3% | -0.2% |
| Muni National Interm Avg | 0.4% | 4.2% | 2.0% | 5.8% | -8.2% | 1.7% | 4.3% | 6.7% | 0.8% | 4.7% | -0.2% |
| Risk Measures | |
| Standard Deviation: | 4.8% |
| Total Risk Index: | 0.39 - Low |
| Category Risk Index: | 1.00 - Above Average |
| Category Risk Grade: | D (60% Rank) |
| Beta: | 0.83 |
| R-Squared: | 98% |
| 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: | $622 Mil |
| Fund Total Assets: | $ 623 Mil |
| Share Class Type: | Other |
| Portfolio Turnover: | 49% |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 11.0 years | |||
| Average Tenure: 7.8 years | |||
| Managers (Year): Khodarahmi John (2015), Diefenthaler Jason (2021) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 457 |
| % in Top 10 Holdings: | 7.2% |
| 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: | 98.2% |
| Foreign Bond: | 1.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 0.8% |
Purchase Information
| Fund Family: | Schwab Funds |
| Phone Number: | 877-824-5615 |
| Website: | www.schwab.com |
| Status: | Open |
| Inception Date: | September 11, 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 (%): | 0.68% |
| Share Class: | Schwab Tax-Free Bond |
| Min. Subsequent Purchase: | $ 0 |
| Min. Subsequent IRA Purchase: | $ 0 |
