Charles Schwab (SCHW), a leading financial services company, provides a variety of mutual funds catering to diverse investment goals. SCHW offers funds that passively track market indexes and come with lower expense ratios compared to actively managed funds. Today, we have focused on two Charles Schwab funds – SFSNX and SWISX – with at least 10% upside potential projected by analysts over the next twelve months.
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Let’s take a closer look at the two funds.
Is SFSNX a Good Investment?
The Schwab Fundamental US Small Company Index Fund (SFSNX) seeks to track the performance of the Russell RAFI U.S. Small Company Index. The fund provides exposure to small U.S. companies based on fundamental measures. As of today’s date, SFSNX has 956 holdings with total assets of over $1.87 billion. It has a low expense ratio of 0.25%, making it a cost-effective option. Also, SFSNX has generated a return of 20.2% over the past six months.
Overall, SFSNX has a Moderate Buy consensus rating. This is based on the weighted average consensus rating of each stock held in the portfolio. Of the total stocks held, 585 have Buys, 325 have a Hold rating, and 46 have a Sell rating. The analysts’ average price target on SFSNX of $18.83 implies a 10.06% upside potential from the current levels.
Is SWISX a Good Investment?
The Schwab International Index Fund (SWISX) tracks the performance of the MSCI EAFE Index. The index measures the total return of large-cap equities from developed international countries. The SWISX fund has 785 holdings with total assets of $8.78 billion. Additionally, the fund has a low expense ratio of 0.06%. The SWISX fund has returned about 15% in the past six months.
On TipRanks, SWISX has a Moderate Buy consensus rating. This is based on 334 stocks with a Buy rating, 412 stocks with a Hold rating, and 39 with a Sell rating. The analysts’ average price target on the SWISX mutual fund of $27.53 implies about 15.35% upside potential from the current levels.
Concluding Note
Both SFSNX and SWISX mutual funds offer a blend of potential growth, making them a suitable option for investors seeking long-term capital appreciation. However, it would be prudent to conduct thorough research before investing in both of these mutual funds.
