Author Topic: Schwab Comparables  (Read 1226 times)

Alittlehelpgoesalongway

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Schwab Comparables
« on: December 20, 2016, 07:27:10 PM »
Hey everyone, I just transferred funds from my 457 plan to Schwab (only option for work) due to the high fees for the index fund.  I found an older post with Schwab funds here, but I didn't find the answer I was looking for in terms of bonds.  I was hoping to get something as close as possible to: VTSAX, VBTLX, and VTIAX.  Am I looking at the correct symbols for Schwab comparables as: SWTSX, SWLBX, and SWISX?  Do you guys think the SWLBX fund has too high of an expense ratio? 

Thanks for all the help

Radagast

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Re: Schwab Comparables
« Reply #1 on: December 20, 2016, 08:22:36 PM »
That looks correct to me. VBTLX has an expense ratio of 0.29%. Not terrible, but definitely not great. You have a few options for it.
-Ignore it and carry on
-Hold a smaller number of bonds since this will make them less useful for the long run
-Use their TIPS fund which has an expense ratio of 0.19%
-If you don't mind making each transaction manually, use one of their ETF's such as SCHZ or SCHR
-If you don't mind making each transaction manually, use their brokerage to directly purchase US treasury bonds for free (<-- I would call this technically the best option for owning bonds if you don't mind doing it yourself)
« Last Edit: December 20, 2016, 11:38:35 PM by Radagast »

Alittlehelpgoesalongway

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Re: Schwab Comparables
« Reply #2 on: December 21, 2016, 08:15:29 AM »
Thanks Radagast, I will call and look to buy the treasury bond. Thank you for your reply

Radagast

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Re: Schwab Comparables
« Reply #3 on: December 21, 2016, 09:02:23 AM »
I missed an important point. They DO charge a fairly large commission if you call and ask them to buy for you. It is only free if you use the online brokerage to buy it yourself, and then only for normal treasury bonds, notes, and bills. Maybe for TIPS as well.

Scandium

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Re: Schwab Comparables
« Reply #4 on: December 21, 2016, 09:10:17 AM »
I started out with Schwab, and still love it for my banking (ATM fees refund is awesome). But I moved my taxable to Vanguard. SWTSX is good, pretty much the same as VTSAX. But their international funds gave me a headache. SWISX has no small cap, and no emerging markets. If you want that you need to add two more funds/ETFs. SCHE and SCHC I believe. Doesn't' look like there are mutual fund versions, except in their (overpriced) Fundamental series.

Your options could certainly be worse for a limited work account though. I wish I had schwab... But be aware of the limitations of schwabs international funds. And perhaps supplement this in a taxable account.