About SWRSX
The Schwab Treasury Inflation Protected Securities Index Fund is a mutual fund that aims to track, before fees and expenses, the total return of an index composed exclusively of inflation-protected U.S. Treasury securities, known as Treasury Inflation-Protected Securities (TIPS). TIPS are U.S. government bonds designed so that both their principal value and interest payments adjust with changes in the Consumer Price Index (CPI), providing explicit protection against inflation. As inflation rises, the principal value of these securities is increased, resulting in higher interest income; in periods of deflation, the principal adjusts downward, but investors are guaranteed not to receive less than the original principal at maturity.
This fund provides broad, straightforward, and low-cost exposure to the U.S. TIPS market, with no investment minimums and a notably low expense ratio. It serves as a potential core holding in diversified portfolios, appealing to investors seeking to help preserve purchasing power in inflationary environments. The fund’s portfolio is diversified across various maturities of TIPS issued by the U.S. Treasury, ensuring high credit quality and interest rate sensitivity. Its role in the market is to offer reliable, government-backed inflation protection through collective investment in these indexed bonds.
Fund Family Schwab
Category Inflation-Protected Bond
Performance Rating Average
Risk Rating Below Average
Stock Exchange NASDAQ
Ticker Symbol SWRSX
Index Bloomberg U.S. TIPS TR
SWRSX had a total return of 1.85% in the past year, including dividends. Since the fund's
inception, the average annual return has been 3.28%.
