Fund Evaluator:
Schwab Short-Term Bond Index (SWSBX)
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Fund Details
Schwab Short-Term Bond Index Overview
Schwab Short-Term Bond Index (SWSBX) is a passively managed Taxable Bond Short-Term Bond fund. Schwab Funds launched the fund in 2017.
The investment seeks to track as closely as possible, before fees and expenses, the total return of the Bloomberg US Government/Credit 1-5 Year Index composed of U.S. investment grade government related and corporate bonds with maturities between 1-5 years. The index is a broad-based benchmark measuring the performance of U.S. dollar-denominated U.S. Treasury bonds, government related bonds and investment grade U.S. corporate bonds that have a remaining maturity of greater than or equal to one year and less than five years. The fund will invest at least 90% of its net assets in securities included in the index.
About Schwab Short-Term Bond Index (SWSBX)
There are 2 members of the management team with an average tenure of 9.44 years: Steven Hung (2017), Matthew Hastings (2017). Management tenure is more important for actively managed funds than passive index funds.
The fund has 2 primary benchmarks: Bloomberg US Agg Bond TR USD index with a weighting of 100% and Bloomberg US Govt/Credit 1-5 Yr TR USD index with a weighting of 100%. Schwab Short-Term Bond Index has 3359 securities in its portfolio. The top 10 holdings constitute 7.7% 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 Short-Term Bond Index is part of the Fixed Income global asset class and is within the Taxable Bond fund group. Schwab Short-Term Bond Index has 9.6% 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 99.8% (90.2% domestic bond, 9.6% foreign bond and 0.0% convertible bond). Schwab Short-Term Bond Index has 0.2% of the portfolio in cash.
Assets Under Management
The fund has $1 billion in total assets, which is above the $904 million average for the Short-Term Bond 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.
SWSBX 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 Short-Term Bond Index expense ratio is low compared to funds in the Short-Term Bond category. Schwab Short-Term Bond Index has an expense ratio of 0.06%, which is 91% 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 Short-Term Bond Index 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 135% for the Short-Term Bond category.
Recently, in the month of July 2026, Schwab Short-Term Bond Index returned -0.2%, which earned it a grade of D, as the Short-Term Bond category had an average return of -0.0%. 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 Short-Term Bond Index has a trailing yield of 3.82%, which is below the 4.16% category average. The fund normally distributes its income monthly.
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 Short-Term Bond Index Grades
Year to date, the fund has returned 0.4%, 0.5 percentage points worse than the category, which translates into a grade of F. The fund has returned 2.9% over the past year (grade of D), 4.4% over the past three years (grade of F) and 1.6% per year over the past five years (grade of F).
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SWSBX 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 |
|
| SWSBX Return (NAV) | -0.2% | 0.0% | 2.9% | 4.4% | 1.6% | na |
| SWSBX Grade | D | F | D | F | F | na |
| +/- Category | -0.1% | -0.3% | -0.5% | -0.5% | -0.7% | na |
| Short-Term Bond Avg | -0.0% | 0.3% | 3.4% | 5.0% | 2.2% | 2.3% |
| SWSBX Tax Cost Ratio | na | na | 1.9% | 1.7% | 1.3% | na |
SWSBX Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| SWSBX Return (NAV) | 0.4% | 6.0% | 3.7% | 4.8% | -5.5% | -1.1% | 4.5% | 4.9% | 1.3% | na | na |
| SWSBX Grade | F | B | F | D | D | F | B | B | B | na | na |
| +/- Category | -0.5% | 0.2% | -1.2% | -0.8% | -0.5% | -1.0% | 0.3% | 0.2% | 0.6% | na | na |
| Short-Term Bond Avg | 0.9% | 5.9% | 4.9% | 5.6% | -5.0% | -0.0% | 4.2% | 4.8% | 0.7% | 1.9% | 2.5% |
| Risk Measures | |
| Standard Deviation: | 2.3% |
| Total Risk Index: | 0.19 - Low |
| Category Risk Index: | 1.15 - Above Average |
| Category Risk Grade: | D (77% Rank) |
| Beta: | 0.37 |
| R-Squared: | 86% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | na |
| Bond Investment Style: | High Quality Limited Sensitivity |
| Yield: | 3.8% |
| Dividend Distribution: | Monthly |
| Cap Gains Distribution: | |
| Total Assets: | $1651 Mil |
| Fund Total Assets: | $1,652 Mil |
| Share Class Type: | Other |
| Portfolio Turnover: | 49% |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 9.4 years | |||
| Average Tenure: 9.4 years | |||
| Managers (Year): Hung Steven (2017), Hastings Matthew (2017) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 3359 |
| % in Top 10 Holdings: | 7.7% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 9.6% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 90.2% |
| Foreign Bond: | 9.6% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 0.2% |
Purchase Information
| Fund Family: | Schwab Funds |
| Phone Number: | 877-824-5615 |
| Website: | www.schwab.com |
| Status: | Open |
| Inception Date: | February 23, 2017 |
| 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 (%): | 0.06% ( Rating : Low ) |
| Category Average Expense Ratio (%): | 0.66% |
| Share Class: | Schwab Short-Term Bond Index |
| Min. Subsequent Purchase: | $ 0 |
| Min. Subsequent IRA Purchase: | $ 0 |
