Fund Evaluator:

Schwab Total Stock Market Index Overview

Schwab Total Stock Market Index (SWTSX) is a passively managed U.S. Equity Large Blend fund. Schwab Funds launched the fund in 1999.

The investment seeks to track the total return of the entire U.S. stock market, as measured by the Dow Jones U.S. Total Stock Market IndexSM. The fund generally invests at least 80% of its net assets (including, for this purpose, any borrowings for investment purposes) in these stocks; typically, the actual percentage is considerably higher. It generally gives the same weight to a given stock as the index does. The fund may invest in derivatives, principally futures contracts, and lend its securities to minimize the gap in performance that naturally exists between any index fund and its corresponding index. It is non-diversified.

About Schwab Total Stock Market Index (SWTSX)

There are 4 members of the management team with an average tenure of 8.30 years: Christopher Bliss (2017), Ferian Juwono (2013), Jeremy Brown (2019), Agnes Zau (2023). Management tenure is more important for actively managed funds than passive index funds.

The fund has 1 primary benchmark: DJ US Total Stock Market TR USD index with a weighting of 100%. Schwab Total Stock Market Index has 2950 securities in its portfolio. The top 10 holdings constitute 34.6% of the fund’s assets. The fund meets the SEC requirement of being classified as a nondiversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

Schwab Total Stock Market Index is part of the Equity global asset class and is within the U.S. Equity fund group. Schwab Total Stock Market Index has 0.6% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 99.1%. There is 0.6% 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 Total Stock Market Index has 0.3% of the portfolio in cash.

Assets Under Management

The fund has $44 billion in total assets, which is above the $6 billion average for the Large 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.

SWTSX 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 Total Stock Market Index expense ratio is low compared to funds in the Large Blend category. Schwab Total Stock Market Index has an expense ratio of 0.03%, 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 Total Stock Market Index has a portfolio turnover rate of 3%, indicating that holds its assets around 0.3 years. By way of comparison, the average portfolio turnover is 48% for the Large Blend category.

Recently, in the month of June 2026, Schwab Total Stock Market Index returned -0.4%, which earned it a grade of C, as the Large Blend category had an average return of -0.2%. 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 Total Stock Market Index has a trailing yield of 0.99%, which is above the 0.56% 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 Total Stock Market Index Grades

Year to date, the fund has returned 11.0%, 2.0 percentage points better than the category, which translates into a grade of B. The fund has returned 23.0% over the past year (grade of B), 20.4% over the past three years (grade of B) and 12.2% per year over the past five years (grade of C) and 15.0% per year over the past 10 years (grade of B).

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