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Schwab Target 2040 SWERX

Analyst rating as of
NAV / 1-Day Return
18.17  /  1.45 %
Total Assets
1.2 Bil
Adj. Expense Ratio
Expense Ratio
Fee Level
Longest Manager Tenure
9.92 years
Target-Date 2040
Investment Style
Large Blend
Credit Quality / Interest Rate Sensitivity
Medium / Moderate
TTM Yield

Morningstar’s Analysis

Will SWERX outperform in future?

Get our overall rating based on a fundamental assessment of the pillars below.

Schwab Announces Changes to Glide Path; Target-Date Series Is Under Review

Senior Analyst

Analyst Note

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On Jan. 13, 2022, Schwab announced changes to the glide path of the Schwab Target series. The firm is raising equity weightings across the glide path by roughly 2 to 5 percentage points as it expects fixed income to continue to generate weak yields and total returns. Early in the glide path, most of that increase will go to REITs. The bond allocation will be reduced accordingly, with one exception: The allocation to Treasury Inflation-Protected Securities (which phases in about 10 years before the target date) will stay at the same absolute level as the firm anticipates higher inflation on a long-term basis. The firm is also replacing MetWest Total Return Bond MWTIX with Western Asset Core Plus Bond WAPSX as the active core bond holding because of personnel changes at the former. Finally, the series will allocate more assets to its underlying large-growth and large-value holdings and less to large-blend holding Schwab Core Equity SWANX. We have placed this target-date series' ratings under review as we assess these changes, which will be implemented by Feb. 1, 2022.

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