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Charles Schwab Index Investing Review


ConsumersAdvocate.org Rating: 4.8 / 5 (Excellent)
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Charles Schwab & Co. is an investment banking and securities brokerage firm that offers index fund investments. Founded in 1971, the San Francisco-based firm offers investment advisory, trading, equity research, and online financial services.
 
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Charles Schwab Fund Characteristics

Fund Characteristics - 4.9 / 5

In addition to offering its own index funds, Schwab offers thousands of funds from other providers as well. These include more than 2,000 index mutual funds and ETFs as well as over 400 commission free index ETFs and index mutual funds. Schwab also offers low-cost market cap index mutual funds, with no minimums. These are a major plus for those who are trying to invest but don’t have much money up front. Plus, the company makes it easy to find the right investments with the “Fund Finder tool” that customers can use to screen and compare mutual funds as well as ETFs.
Types of Index Funds Offered
S&P 500
Barclays Capital Aggregate Bond Index
Other
Minimum Investment
No minimum.

Charles Schwab Fees

Fees - 4.8 / 5

Schwab’s market index mutual fund fees vary, but are generally low-cost. For instance, the Schwab S&P 500 Index Fund (SWPPX) has an expense ratio of 0.03% and its domestic equity index ETFs appear to range from 0.03% to 0.07%. Investors can choose from several of the company’s products, such as its brokerage or investment account. Clients can also build a personalized portfolio using Schwab’s Portfolio Builder or use a professionally managed portfolio, such as the Schwab Intelligent Advisory online portfolio. However, there may be other fees that apply. We strongly encourage investors to conduct their own thorough research before choosing a financial product and further investigate what fees or expenses they may incur while investing. Additionally, we also encourage investors to check out our other reviews on ConsumersAdvocate.org, such as our review on the best online brokerage accounts.
Trade Fees
$4.95 per transaction for online stock and ETF trades
Other Fees
Online stock and ETF trades (for ETFs that are not part of Schwab ETF OneSource) are $4.95 per transaction. Mutual fund fees for those that are not part of Schwab Mutual Fund One Source are $49.95 per transaction. However, Schwab offers a large number of commission-free ETFs and transaction free mutual funds.

Charles Schwab Financial Strength

Financial Strength - 4.8 / 5

With total client assets teetering over $3 trillion, investors can be comforted not only by Charles Schwab's size and its long history of financial advisement – the company has been around since the 70s – but also by its status as the third largest provider of index mutual funds and the fifth largest provider of ETFs.
Moody's Financial Rating
A2
Total Assets Under Management
$340 billion on a discretionary basis, $15.7 billion on a non-discretionary.

Charles Schwab Reputation, Service, and Communication

Reputation, Service, and Communication - 4.9 / 5

Charles Schwab enjoys a long-standing reputation as a leader in the financial industry. The company was also named one of the World’s Best Employers 2018 by Forbes magazine and was ranked by J.D. Power as the “Highest in Investor Satisfaction with Full-service Brokerage Firms” three years in a row. The Consumer Financial Protection Board (CFPB) lists 215 matches out of 1,174,793 total complaints about the company. Additionally, Charles Schwab has a long-term rating of A2 with Moody's. The company offers around-the-clock customer service 24/7 through phone and chat. Schwab also has branches customers can visit. The firm is also Securities Investor Protection Corporation (SIPC) insured. We continue to recommend that customers do their own research before choosing an investment product.
# of FINRA Regulatory Events
52
# of FINRA Civil Events
3
# of FINRA Arbitrations
220
Consumer Financial Protection Board (CFPB) Complaints
215
Customer Support Hours
24/7
Modes of Communication
Chat
Email
Branch

Company Profile

Full Name
Charles Schwab Index Investing
Company Website
https://www.schwab.com/
Headquarters
211 Main Street, San Francisco, CA, 94105

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Top Rated
  • Seven index fund alternatives
  • Indexes mirroring the S&P 500, Russells, MSCIs, and many more
  • Detailed performance statistics and portfolio overviews
  • Low $2500 starting investment on all regular index fund accounts
  • Strong financial strength and outlook
  • Rated A+ by the BBB
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