About SWYGX
Schwab Target 2040 Index Fund is a target-date mutual fund designed for investors planning to retire around the year 2040. Its primary function is to provide capital appreciation and income by strategically allocating assets across a diverse range of Schwab-affiliated exchange-traded funds (ETFs), which track broad market indices. The fund gradually adjusts its asset mix, typically reducing risk and increasing fixed income exposure as the target retirement date approaches, aligning with the changing risk tolerance of investors nearing retirement.
Notable features include a significant allocation to U.S. large-cap equities, complemented by positions in domestic and international stocks, real estate investment trusts (REITs), emerging markets, and both domestic and international bonds. This diversified approach aims to balance growth potential with risk management over time. The fund distinguishes itself through low costs, a low turnover rate, and a passive indexing strategy, making it a cost-efficient choice within its category. Managed by an experienced team at Schwab, the fund has established itself as a reliable retirement solution, reflecting sector shifts and maintaining broad market exposure to support long-term investment objectives for retirement-oriented portfolios.
Fund Family Schwab
Category Target-Date 2040
Performance Rating Average
Risk Rating Below Average
Stock Exchange NASDAQ
Ticker Symbol SWYGX
Index Dow Jones US Total Stock Market TR
SWYGX had a total return of 17.73% in the past year, including dividends. Since the fund's
inception, the average annual return has been 12.57%.
