Asset allocation is a time-tested strategy designed to diversify a portfolio across key asset categories. By combining investments across asset classes and management styles in a single investment vehicle, these Funds can help moderate risk while seeking competitive returns. All of Schwab's asset allocations funds offer the strengths and diversification of multiple underlying funds to meet their investment objectives. Schwab Funds' asset allocation funds are designed to provide investors with investment management, asset allocation and ongoing rebalancing over time.
Schwab Balanced Fund pursues an asset allocation strategy by maintaining a portfolio comprising of both equities and bonds, while the Schwab Monthly Income Funds are designed to provide monthly income along with some equity growth potential.
Schwab MarketTrack Portfolios maintain a defined mix of asset classes over time using an passive strategy by investing in underlying funds while Schwab Target Funds, are geared toward an expected retirement date and adjusts its asset allocation over time as an investor approaches retirement.
Charles Schwab Investment Management actively manages the Schwab Asset Allocation Funds to maintain their dedicated allocations. Veteran managers monitor the market and adjust investments as needed to keep all the Funds in line with their stated objective.