Schwab Small Cap Index fund offers a well-diversified and low-turnover portfolio that is representative of the U.S. small-cap market. However, indexing this illiquid and volatile space is inherently tricky, and the fund’s index does little to mitigate turnover and the accompanying costs among its smallest holdings. This limits its Morningstar Analyst Rating to Bronze.
Will SWSSX outperform in future?
Get our overall rating based on a fundamental assessment of the pillars below.
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable SWSSX’s performance objective and investment process is for both security selection and portfolio construction.
The People Pillar is our evaluation of the SWSSX management team’s experience and ability. We find that high-quality management teams deliver superior performance relative to their benchmarks and/or peers.
The Parent Pillar is our rating of SWSSX’s parent organization’s priorities and whether they’re in line with investors’ interests.