Charles Schwab S&P 500 Index Fund

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S&P is an index which consists of stocks of 500 companies with large capital and the most of them is from United States of America. This index is the most popular index which is owned and maintained by Standard & Poor’s, a division from McGraw-Hill.

All stocks which are registered in this index is large public companies and sold in main stock exchange in United States of America such as in New York stock exchange and Nasdaq. After Dow Jones Industrial Average, S&P is the index with the most attention. There are a lot of index funds and exchange-traded funds which tracks the performance of S&P by holding the same shares with the index. So, if a company is entered to this list, the company’s stock price will increase.

The S&P Index Fund of Schwab was issued on May 19, 1997. It was done by Charles Schwab Corporation. Charles Schwab Investment Management, Inc. advises and manages SWPPX and it charges an expense ratio of 0.03%. SWPPX is a mutual fund and it seeks to have investment results corresponding to the total return of the S&P 500 index. To reach its investment goal, SWPPX usually invest at least 80% of the total net assets in stocks comprising the S&P 500 index. Then, SWPPX usually will give the similar weights to these stocks as the index. Until October 24, 2017, SWPPX owns 508 holdings and the amount is $29.2 billion and a portfolio turnover of 2%. When September end, SWPPX had a beta of 1.0; an alpha of -0.07; a Sharpe ratio of 1.03; and standard deviation of 10.04.

Now, how about the rankings? 1,292 Large Blend Funds were evaluated by U.S. News. Their list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers but currently SWPPX is not ranked. For investment strategy, the fund’s site says that the investment look for tracking the total return of the S&P 500 Index. As mentioned above that the fund usually invests at least 80% of its net assets in stocks which are included in the S&P 500 index. It usually gives the similar weight to a given stock as the index does. The fund may invest in derivatives, principally futures contracts and lend its securities. It is done to minimize the gap in performance that naturally exists between any index fund and its corresponding index.

How about the role in portfolio? The fund is a core large-cap holding in a portfolio. How about management? Agnes Hong has managed the fund since 2012, Ferian Juwono since 2013 and David Rios since 2015. They are all are veteran fund managers and they oversee a number of other funds for Charles Schwab. For your information, the fund has returned 14.32% over the past year. Over the past three year, it has returned 11.84%, over the past 5 years it has returned 13.33% and over the past decade, it has returned 10.13%. Charles Schwab S&P 500 Index Fund owns an expense ratio of 0.05%.

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