Best Charles Schwab Mutual Funds
In addition to its brokerage services, Charles Schwab also develops and manages its own collection of mutual funds. These funds can be traded directly through Schwab and through many other brokerage firms in the United States and internationally. Below are four funds that stand out to us:
Schwab Fundamental US Large Company Index Fund (SFLNX)
The first fund on our list is SFLNX, Schwab’s Fundamental US Large Company Index Fund. One feature that immediately stands out is the strong ratings from Morningstar. These ratings appear on Schwab’s website and can easily be verified through other research sources. The fund currently holds a very high overall rating. The return rating is high while the risk rating is average, suggesting a favorable balance between risk and return.
As the name indicates, the fund focuses mainly on large-capitalization companies located in the United States. Some holdings may fall into the mid-cap range, while others qualify as mega-cap firms, so the large-cap label represents the general focus of the portfolio. Examples of companies in the fund include Apple, Walmart, and Exxon Mobil. The holdings also span multiple sectors of the economy. Energy, financial services, and consumer staples are among the industries represented.
SFLNX carries no load and no transaction fee when traded at Schwab. The fund’s expense ratio is 0.25%, which is relatively low because the strategy is passive (it tracks the Russell RAFI™ US Large Company Index). With such a low expense ratio, the fund also does not charge a 12b-1 fee.
The 12-month trailing return of the mutual fund ranks near the top among its peers. Although it has trailed the S&P 500 over this period, Schwab’s fund has outperformed the index over both 15-year and 3-year periods. It has also beaten its Morningstar category (large value) across several timeframes.
Schwab Treasury Inflation Protected Securities Index Fund (SWRSX)
Our next selection is a bond fund. SWRSX is the Schwab Treasury Inflation Protected Securities Index Fund. It invests in Treasury Inflation-Protected Securities issued by the U.S. Treasury. The fund has an effective maturity of 7.22 years and an effective duration of 6.68 years. Because the securities are U.S. Treasury obligations, the average credit rating is AAA.
Morningstar assigns slightly different ratings to this fund. It receives a very high rating for both overall and 10-year performance. The fund’s historical return is considered above average, while the risk level is viewed as average.
Schwab’s fund profile also displays the Morningstar style box. According to this metric, the fund shows moderate interest-rate sensitivity along with very strong credit quality.
Although SWRSX does not have quite the same Morningstar ratings as the first fund we reviewed, it is significantly cheaper to own. The expense ratio is only 5 basis points per year. Schwab achieves this low cost by using a passive approach that tracks the Bloomberg US Treasury Inflation-Linked Bond Index.
Like the equity fund mentioned earlier, this Schwab Treasury fund carries no loads. There are also no transaction fees when buying or selling the fund at Schwab.
SWRSX has outperformed its benchmark index over long timeframes we reviewed, including 1-year, 3-year, 5-year, 10-year, and 15-year periods. It has also exceeded the performance of its Morningstar category (inflation-protected bond) across several of these intervals.
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Schwab S&P 500 Index Fund (SWPPX)
Another Schwab fund worth highlighting is its S&P 500 index fund. SWPPX follows the well-known U.S. stock market index and does so with very low expenses. The expense ratio is just 0.02% annually. Like the other funds mentioned above, there are no additional costs for owning or trading the fund.
Compared with other funds that track the S&P 500 Index, Schwab’s offering performs quite well. Morningstar assigns a very high rating across the different timeframes it evaluates. The fund’s extremely low expense ratio likely contributes to these strong ratings. In its category (large blend), many competing funds have expense ratios between 0.5% and 0.75%. SWPPX has managed to slightly outperform its benchmark index by a few basis points in multiple periods.
SWPPX is also included on Schwab’s Mutual Fund OneSource Select List. On Schwab’s mobile app and website, this appears as a blue “Select List” label near the top of the fund’s profile. Funds included on this list have passed certain screening criteria related to expenses, income potential, risk levels, and performance. Essentially, Schwab’s investment specialists have reviewed them for possible long-term strength.
SWPPX requires only a $1 minimum investment, making it accessible even to very small accounts. The fund is also eligible for recurring investments, which allows investors to automate small periodic contributions.
Trading SWPPX or any other mutual fund through Schwab is straightforward. The website currently offers both classic and Beta layouts, and each displays buy and sell buttons at the top of the fund’s profile. Clicking one of these buttons opens the order ticket. When placing a purchase order, investors can select from several reinvestment options:
- Reinvest capital gains only
- Reinvest dividends and capital gains
- None
The same reinvestment options appear in Schwab’s mobile app. The mobile version will also estimate the number of shares based on the dollar amount entered, which the website does not currently display.
Schwab Health Care Fund (SWHFX)
The final fund in our list is SWHFX, Schwab’s health care mutual fund. Unlike the three previous funds, this one is actively managed. Rather than tracking an index, the managers attempt to outperform the market by selecting securities in the health care sector.
Like the S&P 500 fund discussed earlier, this health care fund is also included on Schwab’s Select List, meaning Schwab’s investment analysts have approved it for consideration. Morningstar also assigns favorable ratings. The fund currently holds a very high rating overall with a low risk rating and an average return rating. As with the other funds discussed above, the only ongoing cost is the expense ratio, which is 0.80%. This level is fairly reasonable for an actively managed fund and is lower than the category average of 1.02%.
Schwab’s fund profile for SWHFX includes a downloadable report card in PDF format. This document summarizes much of the same information shown on the website’s fund page. Some of the holdings listed in the report include:
- UnitedHealth Group
- Johnson & Johnson
- Novo Nordisk A/S ADR
- Abbott Laboratories
Locating SWHFX or any other mutual fund on Schwab’s website is very simple using the broker’s mutual fund screener (which currently is not available on the mobile app). To access it, click the Research tab at the top of the website and then choose the mutual funds link on the next page.
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Best Charles Schwab Funds Summary
Similar to many other fund families, the strongest performers from Schwab (read review) during the past decade have largely been index funds. Schwab’s index products remain competitive and continue to maintain very low expense ratios. Investors who prefer active management might also look at the Core Equity Fund, which may appeal to those seeking returns above the general market and who are comfortable accepting the risks that come with active portfolio management.
Updated on 3/9/2026.
Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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