The Schwab Total Stock ÃÛÌÒ´«Ã½ Index Select Class (MUTF: ) mutual fund invests in stocks that mirror the returns of the broader stock market as measured by the Dow Jones U.S. Total Stock ÃÛÌÒ´«Ã½ index. As an “index fund,” it has rock-bottom costs that mean investors aren’t paying extra for active management.
Here are the specifics for the Fidelity Global Commodity Stock Fund for today’s mutual fund spotlight:
Investing Strategy: Simply put, buying the Schwab Total Stock ÃÛÌÒ´«Ã½ Index Select Class Fund is like buying the Dow Jones index to which it is pegged. More than 98% of its assets are in stocks included in the Dow Jones U.S. Total Stock ÃÛÌÒ´«Ã½ Index. The fund suits investors who like knowing where their investment stands with a simple glance at the broader market like the Dow Jones Industrial Average, and who don’t necessarily think active management can generate significantly better returns. This is a good fund for folks who want to “buy the market.”
Expense Ratio: With a .09 % expense ratio, the Schwab Total Stock ÃÛÌÒ´«Ã½ Index Select CL fund is extremely cheap because it relies heavily on computer models to help decide which securities to buy and sell based on the index. Note it has a $75 transaction fee, however.
Top 5 Holdings: The top stocks in the Schwab Total Stock ÃÛÌÒ´«Ã½ Index Select Class fund includes oil giant ExxonMobil Corporation (NYSE: ) at 2.71% , mass media giant Apple, Inc. (NYSE: ) at 2.08%, industrials conglomerate General Electric Company (NYSE:
) at 1.43%, and technology icons Microsoft Corporation (NASDAQ: ) at 1.41% and International Business Machines Corp (NYSE: ) at 1.35%.
Returns: The one-year return of the Schwab Total Stock ÃÛÌÒ´«Ã½ Index Select CL fund is 18.6 %, slightly better than the 18.2% return for the Dow Jones Industrial Average and S&P 500’s 17.1% return over the same period. But don’t expect this fund to ever significantly differ than the market, since you’re buying an index via the Schwab Total Stock ÃÛÌÒ´«Ã½ mutual fund. For instance, its 5-year return of 8.4% also beats the S&P 500’ 3% return during the period, but lags the Dow’s 10.3% 5-year performance.
Other Fund Statistics
- Total Assets: $1.9 Billion (as of 5/17/11)
- Minimum Investment: $2,500
- Fund manager: Larry M. Mano
- Manager’s Tenure: Since June 1999
