Schwab Hedged Equity
Name
As of 10/22/2021Price
Aum/Mkt Cap
YIELD
Annualized forward dividend yield. Multiplies the most recent dividend payout amount by its frequency and divides by the previous close price.
Exp Ratio
Expense ratio is the fund’s total annual operating expenses, including management fees, distribution fees, and other expenses, expressed as a percentage of average net assets.
Watchlist
Vitals
YTD Return
6.7%
1 yr return
19.9%
3 Yr Avg Return
1.8%
5 Yr Avg Return
4.8%
Net Assets
$65.3 M
Holdings in Top 10
24.7%
52 WEEK LOW AND HIGH
$15.8
$14.07
$17.89
Expenses
OPERATING FEES
Expense Ratio 1.91%
SALES FEES
Front Load N/A
Deferred Load N/A
TRADING FEES
Turnover 168.00%
Redemption Fee N/A
Min Investment
Standard (Taxable)
$0
IRA
N/A
Fund Classification
Fund Type
Open End Mutual Fund
Name
As of 10/22/2021Price
Aum/Mkt Cap
YIELD
Annualized forward dividend yield. Multiplies the most recent dividend payout amount by its frequency and divides by the previous close price.
Exp Ratio
Expense ratio is the fund’s total annual operating expenses, including management fees, distribution fees, and other expenses, expressed as a percentage of average net assets.
Watchlist
SWHEX - Profile
Distributions
- YTD Total Return 6.7%
- 3 Yr Annualized Total Return 1.8%
- 5 Yr Annualized Total Return 4.8%
- Capital Gain Distribution Frequency Annually
- Net Income Ratio -0.04%
- Dividend Yield 0.1%
- Dividend Distribution Frequency Annually
Fund Details
-
Legal NameSchwab Hedged Equity Fund™
-
Fund Family NameSchwab Funds
-
Inception DateSep 03, 2002
-
Shares Outstanding3789138
-
Share ClassOther
-
CurrencyUSD
-
Domiciled CountryUnited States
-
ManagerJonas Svallin
Fund Description
To pursue its investment objective, the fund establishes long and short positions in equity securities issued by U.S. companies. Under normal circumstances it will invest at least 80% of its net assets (including, for this purpose, any borrowings for investment purposes) in equity securities issued by U.S. companies; typically, the actual percentage will be higher. The fund will notify its shareholders at least 60 days before changing this policy. The fund typically purchases or sells short stocks of companies that have market capitalizations of $1 billion or more at the time the stock is purchased or sold short.
The fund approaches risk management from the perspective of its comparative index, the S&P 500® Index (the Index). The portfolio managers seek to keep the fund’s volatility lower than that of the Index.
The fund actively selects portfolio securities. To aid its stock selection, the fund uses Schwab Equity Ratings®, a model that assigns ratings to approximately 3,000 of the largest (by market cap) U.S.-traded stocks. In addition to using Schwab Equity Ratings, the portfolio managers utilize investment data and other analytics to help manage the fund’s portfolio.
Generally, when constructing the portfolio, the portfolio managers select long positions from stocks that are highly rated by Schwab Equity Ratings and select short positions from stocks that are lower rated by Schwab Equity Ratings. As part of the portfolio construction process, the portfolio managers will also purchase lower-rated stocks or stocks that are not rated by Schwab Equity Ratings. This investment approach under normal conditions will result in a long portfolio that maintains an overall weighting toward highly-rated stocks, and a short portfolio that maintains an overall weighting toward lower-rated stocks; however, the long portfolio will usually include lower-rated stocks and the short-portfolio may contain some highly-rated stocks. The portfolio managers will consider the current market environment and any potential negative impact on the fund in determining when to sell a downgraded stock or close out an upgraded short position.
The fund uses a portfolio optimization process to assist in constructing the portfolio. The portfolio managers use the portfolio optimization process to seek to build a portfolio they believe will provide the optimal balance between risk and expected return,
subject to parameters such as the number of stocks desired in the portfolio, the level of portfolio turnover, industry and sector diversification, and volatility considerations.
For more information on Schwab Equity Ratings, please see the “More About Schwab’s Research” section in the prospectus.
When the fund takes a long position, it purchases a stock outright. When the fund takes a short position, it sells a stock that it has borrowed. To complete, or close out, the short sale transaction, the fund buys the same stock in the market and returns it to the lender. The fund makes money if the market price of the stock goes down after the short sale. Conversely, if the price of the stock goes up after the short sale, the fund will lose money because it will have to pay more to replace the borrowed stock than it received when it sold the stock short. Short positions may be used to hedge against the volatility of the long portion of the overall portfolio and/or to garner returns from declines in securities prices.
The fund also may invest in derivatives, principally futures contracts, primarily to seek returns on the fund’s otherwise uninvested cash assets. A futures contract is a contract to buy or sell a specific financial instrument at a specified price at a specific future time. The fund may invest in exchange-traded funds (ETFs) and stocks of real estate investment trusts (REITs). The fund also may lend portfolio securities to earn additional income. Any income realized through securities lending may help fund performance.
For temporary defensive purposes during unusual economic or market conditions or for liquidity purposes, the fund may invest up to 100% of its assets in cash, money market instruments, repurchase agreements and other short-term obligations. The fund also may invest in these types of securities or hold cash while looking for suitable investment opportunities. When the fund engages in such activities, it may not achieve its investment objective.
SWHEX - Performance
Return Ranking - Trailing
| Period | SWHEX Return | Category Return Low | Category Return High | Rank in Category (%) |
|---|---|---|---|---|
| YTD | 6.7% | -24.5% | 42.7% | 63.50% |
| 1 Yr | 19.9% | -17.7% | 76.8% | 27.36% |
| 3 Yr | 1.8%* | -11.1% | 21.8% | 75.68% |
| 5 Yr | 4.8%* | -6.2% | 19.1% | 60.47% |
| 10 Yr | 7.2%* | -6.1% | 12.9% | 37.29% |
* Annualized
Return Ranking - Calendar
| Period | SWHEX Return | Category Return Low | Category Return High | Rank in Category (%) |
|---|---|---|---|---|
| 2023 | -7.4% | -47.6% | 88.4% | 82.29% |
| 2022 | 8.2% | -20.3% | 62.6% | 48.63% |
| 2021 | -13.7% | -53.1% | 12.7% | 82.76% |
| 2020 | 1.4% | -67.1% | 21.9% | 80.75% |
| 2019 | 10.5% | -17.3% | 25.3% | 13.24% |
Total Return Ranking - Trailing
| Period | SWHEX Return | Category Return Low | Category Return High | Rank in Category (%) |
|---|---|---|---|---|
| YTD | 6.7% | -25.1% | 42.7% | 63.50% |
| 1 Yr | 19.9% | -17.7% | 76.8% | 25.37% |
| 3 Yr | 1.8%* | -12.1% | 21.8% | 74.05% |
| 5 Yr | 4.8%* | -6.7% | 19.1% | 60.47% |
| 10 Yr | 7.2%* | -6.1% | 12.9% | 35.59% |
* Annualized
Total Return Ranking - Calendar
| Period | SWHEX Return | Category Return Low | Category Return High | Rank in Category (%) |
|---|---|---|---|---|
| 2023 | -7.4% | -47.6% | 88.4% | 82.29% |
| 2022 | 8.2% | -20.3% | 62.6% | 48.63% |
| 2021 | -13.7% | -53.1% | 12.7% | 83.91% |
| 2020 | 1.4% | -12.7% | 24.8% | 87.58% |
| 2019 | 10.5% | -15.5% | 25.3% | 16.91% |
NAV & Total Return History
SWHEX - Holdings
Concentration Analysis
| SWHEX | Category Low | Category High | SWHEX % Rank | |
|---|---|---|---|---|
| Net Assets | 65.3 M | 0 | 5.17 B | 59.02% |
| Number of Holdings | 318 | 3 | 3014 | 15.69% |
| Net Assets in Top 10 | 16.4 M | -92.7 M | 782 M | 55.88% |
| Weighting of Top 10 | 24.66% | 3.0% | 100.0% | 80.46% |
Top 10 Holdings
- Microsoft Corp 4.26%
- Apple Inc 4.07%
- Amazon.com Inc 3.71%
- Alphabet Inc Class A 2.81%
- Lockheed Martin Corp 2.01%
- Dover Corp 1.99%
- Allstate Corp 1.89%
- Intel Corp 1.78%
- Facebook Inc Class A 1.64%
- Jabil Inc 1.62%
Asset Allocation
| Weighting | Return Low | Return High | SWHEX % Rank | |
|---|---|---|---|---|
| Stocks | 61.29% | -15.93% | 108.24% | 61.95% |
| Cash | 38.71% | -140.68% | 115.93% | 34.31% |
| Preferred Stocks | 0.00% | -0.01% | 9.22% | 65.69% |
| Other | 0.00% | -16.93% | 36.41% | 65.69% |
| Convertible Bonds | 0.00% | 0.00% | 3.02% | 68.14% |
| Bonds | 0.00% | -3.29% | 152.17% | 71.22% |
Stock Sector Breakdown
| Weighting | Return Low | Return High | SWHEX % Rank | |
|---|---|---|---|---|
| Technology | 23.80% | 0.00% | 39.36% | 32.11% |
| Healthcare | 14.09% | 0.00% | 100.00% | 38.95% |
| Consumer Cyclical | 13.98% | 0.00% | 82.14% | 28.42% |
| Financial Services | 13.15% | 0.00% | 77.82% | 60.00% |
| Industrials | 10.06% | 0.00% | 31.29% | 56.32% |
| Communication Services | 8.93% | 0.00% | 29.68% | 53.16% |
| Real Estate | 5.45% | 0.00% | 16.94% | 11.05% |
| Consumer Defense | 5.15% | 0.00% | 28.39% | 65.26% |
| Energy | 2.60% | 0.00% | 15.21% | 47.37% |
| Basic Materials | 1.89% | 0.00% | 21.97% | 68.95% |
| Utilities | 0.90% | 0.00% | 23.37% | 62.63% |
Stock Geographic Breakdown
| Weighting | Return Low | Return High | SWHEX % Rank | |
|---|---|---|---|---|
| US | 57.87% | -40.71% | 106.62% | 54.41% |
| Non US | 3.42% | -31.09% | 98.81% | 44.61% |
SWHEX - Expenses
Operational Fees
| SWHEX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
|---|---|---|---|---|
| Expense Ratio | 1.91% | 0.40% | 11.46% | 53.37% |
| Management Fee | 1.05% | 0.00% | 2.50% | 37.98% |
| 12b-1 Fee | N/A | 0.00% | 1.00% | N/A |
| Administrative Fee | N/A | 0.03% | 1.54% | N/A |
Sales Fees
| SWHEX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
|---|---|---|---|---|
| Front Load | N/A | 2.50% | 5.75% | N/A |
| Deferred Load | N/A | 1.00% | 4.00% | N/A |
Trading Fees
| SWHEX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
|---|---|---|---|---|
| Max Redemption Fee | N/A | 0.50% | 2.00% | 41.07% |
Related Fees
Turnover provides investors a proxy for the trading fees incurred by mutual fund managers who frequently adjust position allocations. Higher turnover means higher trading fees.
| SWHEX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
|---|---|---|---|---|
| Turnover | 168.00% | 0.00% | 498.00% | 55.21% |
SWHEX - Distributions
Dividend Yield Analysis
| SWHEX | Category Low | Category High | SWHEX % Rank | |
|---|---|---|---|---|
| Dividend Yield | 0.05% | 0.00% | 19.71% | 63.94% |
Dividend Distribution Analysis
| SWHEX | Category Low | Category High | Category Mod | |
|---|---|---|---|---|
| Dividend Distribution Frequency | Annually | Annually | Monthly | Annually |
Net Income Ratio Analysis
| SWHEX | Category Low | Category High | SWHEX % Rank | |
|---|---|---|---|---|
| Net Income Ratio | -0.04% | -3.33% | 2.64% | 33.00% |
Capital Gain Distribution Analysis
| SWHEX | Category Low | Category High | Capital Mode | |
|---|---|---|---|---|
| Capital Gain Distribution Frequency | Annually | Annually | Semi-Annually | Annually |
Distributions History
| Date | Amount | Type |
|---|---|---|
| Dec 14, 2018 | $0.081 | |
| Dec 08, 2017 | $0.009 | |
| Dec 10, 2015 | $0.125 | |
| Dec 23, 2008 | $0.013 | |
| Dec 20, 2007 | $0.157 | |
| Dec 21, 2006 | $0.086 | |
| Dec 30, 2005 | $0.012 |
SWHEX - Fund Manager Analysis
Managers
Jonas Svallin
Start Date
Tenure
Tenure Rank
Aug 03, 2012
9.16
9.2%
Jonas Svallin, CFA, Vice President and Head of Active Equities and leads the Active Equities portfolio management and research team. Prior to joining CSIM in 2012, Mr. Svallin spent nearly three years as a partner and a director of quantitative analytics and research at Fiduciary Research & Consulting, where he provided oversight of quantitative analytics and risk management efforts. From 2003 until 2009, Mr. Svallin was a principal and head portfolio manager at Algert Coldiron Investors LLC (now known as Algert Global). Prior to joining Algert, Mr. Svallin worked as a quantitative research associate at RCM Capital Management (now known as Allianz Global Investors) and a senior consultant at FactSet Research Systems.
Wei Li
Start Date
Tenure
Tenure Rank
Jun 14, 2013
8.3
8.3%
Wei Li, Ph.D., CFA, Senior Portfolio Manager at Charles Schwab Investment Management Inc. Prior to joining CSIM in 2012, Ms. Li spent more than ten years at Barclays Global Investors (now known as BlackRock, Inc.), where she held a number of positions. From 2001 to 2009, she worked in various roles in the Global Advanced Active group, including portfolio management and quantitative research for both U.S. and international equity markets. After 2009, she worked in the defined contribution research and product development area for almost two years.
Tenure Analysis
| Category Low | Category High | Category Average | Category Mode |
|---|---|---|---|
| 0.01 | 22.88 | 5.79 | 7.27 |