Schwab S&P 500 Index (SWPPX)
Expense Ratio: 0.09%
Expected Lifetime Fees: $2,947.79
The Schwab S&P 500 Index fund (SWPPX) is a Large Blend fund started on 5/20/1997 and has $11.70 billion in assets under management. The current manager has been running Schwab S&P 500 Index since 3/21/2005. The fund is rated by Morningstar. This fund does not charge 12b-1 fees.
|Mutual Fund Name||Ticker Symbol||Turnover||Assets (M)||Annual Fees|
|Fidelity Spartan 500 Index Advtg||FUSVX||5.0%||44,000||0.06%|
|Fidelity Spartan Total Mkt Idx Advtg||FSTVX||17.0%||12,200||0.07%|
|TIAA-CREF Equity Index Instl||TIEIX||11.0%||3,600||0.07%|
|TIAA-CREF S&P 500 Index Instl||TISPX||14.0%||1,400||0.07%|
|Vanguard 500 Index Signal||VIFSX||4.0%||107,600||0.05%|
|Vanguard Institutional Index Instl||VINIX||5.0%||104,800||0.04%|
|Vanguard Institutional Index Instl Pl||VIIIX||5.0%||104,800||0.02%|
|Vanguard Instl Ttl Stk Mkt Idx Instl||VITNX||12.0%||19,400||0.05%|
|Vanguard Large Cap Index Instl||VLISX||7.0%||5,500||0.08%|
|Vanguard Russell 1000 Index Instl||VRNIX||20.0%||355||0.08%|
|Vanguard Total Stock Market Idx Instl||VITSX||5.0%||181,800||0.05%|
|Vanguard Total Stock Mkt Idx Signal||VTSSX||5.0%||181,800||0.06%|
Turnover represents how much of a mutual fund's holdings are changed over the course of a year through buying and selling. Active mutual funds have an average turnover rate of about 85%, meaning that funds are turning over nearly all of their holdings every year. A high turnover means you could make lower returns because: 1) buying and selling stocks costs money through commissions and spreads and 2) the fund will distribute yearly capital gains which increases your taxes. Look for funds with turnover rates below 50%. For comparison, ETF turnover rates average around 10% or lower.
Generally, smaller funds do better than larger ones. The more assets in a mutual fund, the lower the chance that it will beat its index. Managers outperform an index by choosing stocks that are undervalued. In order to find these undervalued stocks, the manager has to know more than his competitors to develop an "edge." There are only a finite number of stocks a mutual fund manager can reasonably analyze and actively track to gain such a competitive edge. When the fund has more assets, the manager must analyze large companies because he needs to take larger positions. Large companies are more efficiently priced in the market and it becomes increasingly difficult to get an edge.