Schwab Monthly Income Funds

Type: Mutual Funds Net Expense Ratio: 0.250%

Summary

The Schwab Monthly Income Funds are designed to provide investors a choice between three distinct income strategies, that offer diversification across asset classes and income sources, active and index based underlying management styles, and low-cost funds in complete portfolios.

Utilizing a well-diversified portfolio of stock, fixed income and money market mutual funds and Exchanged Traded Funds (ETFs), each Schwab Monthly Income Fund has a distinct monthly payout strategy to meet different income preferences.

Objective

The funds seek to provide current income and, as a secondary investment objective, capital appreciation.

Highlights

  • Monthly payments to support your spending needs
  • Income from multiple asset classes within the convenience of a mutual fund
  • Low cost to make your investment go further
  • No investment minimum

Consider a solution that fits your needs:

  Schwab Monthly Income Fund - Income Payout (SWLRX) Schwab Monthly Income Fund - Flexible Payout (SWKRX) Schwab Monthly Income Fund - Target Payout (SWJRX)
Managed Payout Policy Designed to offer an annual payout based on underlying fund yields and the market environment Designed to offer a targeted annual payout during most market environments and seeks to maximize annual payout while maintaining or growing the level of original investment over the long term Designed to offer a targeted annual payout of approximately 5% during most market environments
Target Annual Payout 0-3% low-rate environment
3-5% normal rate environment
5+% high-rate environment
4-6% 5%
Payout Source
  • Interest
  • Dividends
  • Capital Gains
  • Interest
  • Dividends
  • Return of capital
  • Capital gains
  • Interest
  • Dividends
  • Return of capital
  • Capital gains
Portfolio Structure 30% Equity / 70% Fixed Income 50% Equity / 50% Fixed Income 50% Equity / 50% Fixed Income

†A return of capital is a distribution from the shareholder’s investment principal, rather than net profits from the Fund’s returns. Shareholders who receive periodic distributions consisting of a return of capital may be under the impression that they are receiving net profits when they are not. Return of capital reduces your cost basis in the Fund’s shares and is not taxable to you until your cost basis has been reduced to zero.

Underlying Fund Managers or Sub-Advisors

  • BlackRock Investment Management, LLC
  • Cohen & Steers Capital Management, Inc.
  • Schwab Asset Management
  • T. Rowe Price Group, Inc.

Schwab Asset Management is pleased to announce an update to the dividend distribution date for the Schwab Monthly Income Funds effective December 2023. Click here for more information.

Select Fund

Select a fund from the options below to see further details.

Schwab Monthly Income Fund - Flexible Payout

Performance

Portfolio

Distributions