Fund Evaluator:
Schwab Balanced (SWOBX)
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Best Performing in Moderate Allocation Over the Last Year
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Fund Details
Schwab Balanced Overview
Schwab Balanced (SWOBX) is an actively managed Allocation Moderate Allocation fund. Schwab Funds launched the fund in 1996.
The investment seeks capital growth and income. To pursue its goal, the fund generally invests in a diversified group of other affiliated Schwab mutual funds in accordance with its target portfolio allocation. Normally, it invests 55-65% of its assets in equity securities (including stocks and equity funds) and 35-45% in fixed-income securities (including bonds and fixed-income funds), and cash and cash equivalents (including money market funds).
About Schwab Balanced (SWOBX)
There are 2 members of the management team with an average tenure of 10.93 years: Zifan Tang (2012), Patrick Kwok (2019). 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 Bloomberg US Agg Bond TR USD index with a weighting of 100%. Schwab Balanced has 7 securities in its portfolio. The top 10 holdings constitute 99.2% 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 Balanced is part of the Allocation global asset class and is within the Allocation fund group. Schwab Balanced has 12.2% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 48.8%. There is 9.7% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 36.1% (33.6% domestic bond, 2.5% foreign bond and 0.0% convertible bond). Schwab Balanced has 5.4% of the portfolio in cash.
Assets Under Management
The fund has $752 million in total assets, which is below the $2 billion average for the Moderate Allocation 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.
SWOBX 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 Balanced expense ratio is average compared to funds in the Moderate Allocation category. Schwab Balanced has an expense ratio of 0.51%, which is 49% 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 Balanced has a portfolio turnover rate of 12%, indicating that holds its assets around 0.1 years. By way of comparison, the average portfolio turnover is 52% for the Moderate Allocation category.
Recently, in the month of July 2026, Schwab Balanced returned -1.0%, which earned it a grade of D, as the Moderate Allocation category had an average return of -0.3%. 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 Balanced has a trailing yield of 1.83%, which is below the 1.97% 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 Balanced Grades
Year to date, the fund has returned 4.4%, 2.1 percentage points worse than the category, which translates into a grade of F. The fund has returned 11.2% over the past year (grade of D), 11.2% over the past three years (grade of D) and 5.7% per year over the past five years (grade of D) and 8.4% per year over the past 10 years (grade of C).
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SWOBX 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 |
|
| SWOBX Return (NAV) | -1.0% | 1.1% | 11.2% | 11.2% | 5.7% | 8.4% |
| SWOBX Grade | D | F | D | D | D | C |
| +/- Category | -0.7% | -1.1% | -1.9% | -0.8% | -1.0% | -0.0% |
| Moderate Allocation Avg | -0.3% | 2.1% | 13.1% | 12.0% | 6.6% | 8.5% |
| SWOBX Tax Cost Ratio | na | na | 1.5% | 1.5% | 1.8% | 1.7% |
SWOBX Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| SWOBX Return (NAV) | 4.4% | 12.8% | 12.9% | 17.9% | -19.0% | 14.8% | 14.7% | 20.2% | -4.3% | 15.5% | 5.3% |
| SWOBX Grade | F | C | B | A | F | C | B | C | C | B | F |
| +/- Category | -2.1% | -0.6% | 0.6% | 3.6% | -5.0% | 0.4% | 1.8% | 0.3% | 0.7% | 1.7% | -2.4% |
| Moderate Allocation Avg | 6.4% | 13.4% | 12.2% | 14.3% | -14.0% | 14.4% | 12.9% | 19.8% | -5.1% | 13.8% | 7.7% |
| Risk Measures | |
| Standard Deviation: | 9.4% |
| Total Risk Index: | 0.76 - Below Average |
| Category Risk Index: | 1.02 - Average |
| Category Risk Grade: | C (57% Rank) |
| Beta: | 0.94 |
| R-Squared: | 89% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | Large-Cap Blend |
| Bond Investment Style: | High Quality Moderate Sensitivity |
| Yield: | 1.8% |
| Dividend Distribution: | Annually |
| Cap Gains Distribution: | Annually |
| Total Assets: | $752 Mil |
| Fund Total Assets: | $ 753 Mil |
| Share Class Type: | Other |
| Portfolio Turnover: | 12% |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 14.4 years | |||
| Average Tenure: 10.9 years | |||
| Managers (Year): Tang Zifan (2012), Kwok Patrick (2019) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 7 |
| % in Top 10 Holdings: | 99.2% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 12.2% |
Portfolio Allocation |
|
| Domestic Stock: | 48.8% |
| Foreign Stock: | 9.7% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 33.6% |
| Foreign Bond: | 2.5% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 5.4% |
Purchase Information
| Fund Family: | Schwab Funds |
| Phone Number: | 877-824-5615 |
| Website: | www.schwab.com |
| Status: | Open |
| Inception Date: | November 18, 1996 |
| 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 (%): | 0.51% ( Rating : Avg ) |
| Category Average Expense Ratio (%): | 0.99% |
| Share Class: | Schwab Balanced |
| Min. Subsequent Purchase: | $ 0 |
| Min. Subsequent IRA Purchase: | $ 0 |
