Schwab S&P 500 Index (SWPPX) Analysis
- Fund Overview: Schwab S&P 500 Index (SWPPX) is a mutual fund that tracks the S&P 500 index, providing exposure to 500 of the largest publicly traded companies in the United States. It is part of the Schwab Funds family and has approximately $66.99 billion in assets as of the latest data available1.
- Performance and Volatility: Over the past five years, SWPPX has delivered a 5-year annualized total return of 12.17%, ranking it in the top third among its category peers. The 3-year annualized total return is even stronger at 13.68%, placing it in the top third during this period1. The standard deviation over the past three years is 18.02%, and over the past five years, it is 18.78%. These figures indicate that while the fund has provided solid returns, it has also experienced moderate volatility compared to its peers1.
- Risk Factors: With a 5-year beta of 1, SWPPX is hypothetically as volatile as the market at large. This suggests that while the fund may offer a stable investment option, it is not insulated from market fluctuations1.
- Expense Ratio: The expense ratio for SWPPX is 0.02%, which is competitive with other index funds such as Vanguard 500 Index Fund (VFIAX) at 0.04% and Fidelity 500 Index Fund (FXAIX) at 0.02%2. This relatively low cost makes SWPPX an attractive option for investors looking to track the S&P 500 index at a reasonable expense.
- Investment Considerations: Index funds like SWPPX offer diversification and lower costs, which are advantageous for building wealth2. For investors considering SWPPX, it is important to assess their investment goals, risk tolerance, and the overall asset allocation of their portfolio.
In conclusion, Schwab S&P 500 Index (SWPPX) is a solid choice for investors seeking exposure to the S&P 500 index with a low expense ratio and a track record of strong returns. However, investors should weigh the fund's volatility against their risk tolerance and consider other factors such as their investment horizon and the existing asset allocation of their portfolio.
11/9/2024 05:32am
