Schwab Dividend Equity Fund™
 

Investment Objective

The Schwab Dividend Equity Fund aims to provide the benefits of dividend-paying stocks–a source of steady income or a cushion against the market's downturns–as well as capital appreciation.

Investment Strategy

The Fund seeks current income and capital appreciation through a higher dividend yield than that of the S&P 500® Index1 but with a lower risk profile. Designed and managed to take advantage of current tax law under which qualified dividend income is taxed at a maximum rate of 15%, the Fund generally invests at least 80% of its net assets in dividend-paying common and preferred stocks. It may also purchase other equity investments, including convertible securities and futures.

Schwab Dividend Equity Fund
Ticker Net OER2 Min. Investment
SWDSX 0.89% $100
Cumulative Growth of a $10,000 Investment (pre-tax)
Growth of $10,000 Investment as of         
Fund
Category

Distinguishing Characteristics and Benefits

Driven by Schwab Equity Ratings®

The Fund uses Schwab Equity Ratings to aid its stock selection, which represents Schwab's point of view on the 12-month performance outlook for approximately 3,000 of the largest U.S.-headquartered stocks (by market capitalization) using a scale of A through F. It employs a disciplined methodology that evaluates each stock on the basis of investment criteria from four broad categories: fundamentals, valuation, momentum and risk.

Growth and Income from Large- and Mid-Caps

The Fund's management team seeks to achieve both income and growth by narrowing an initial universe of stocks–about 1,500 dividend-paying equities from large- to mid-cap U.S. companies–to about 100 names that have been rated A or B by Schwab Equity Ratings. The managers then construct and maintain a portfolio that seeks to provide a dividend yield that exceeds that of the S&P 500 Index with lower volatility.

Investment Management Process

The portfolio management team employs a multifactor approach to finding what it believes is the right blend of risk and reward, not only within each individual stock but also with regard to how such stocks fit together to satisfy the investment style and risk profile of the Fund. As such, Schwab Equity Ratings is just one component of stock evaluation; other essential factors also constitute the basis for portfolio construction and optimization. As an actively managed fund, the Schwab Dividend Equity Fund's allocations across sectors and specific holdings will often vary from its benchmark, seeking to capitalize from selected over- and underweightings based on market and economic considerations.

Investment Management Team

Jonas Svallin, CFA

Managing Director, Head of Disciplined Active Equity Strategies
Full Bio>
 
Investment Management Bio

Jonas Svallin, CFA

Managing Director, Head of Disciplined Active Equity Strategies

Jonas Svallin is a Managing Director and Head of Disciplined Active Equity Strategies for Charles Schwab Investment Management, Inc. (CSIM). Mr. Svallin leads the portfolio management team of Schwab’s disciplined active equity funds, which comprise the Schwab Active Equity Funds and Schwab Global Real Estate Fund. He also has overall responsibility for all aspects of the management of the funds. Prior to joining CSIM in 2012, Mr. Svallin spent nearly three years as a partner and a director of quantitative analytics and research at Fiduciary Research & Consulting, where he provided oversight of quantitative analytics and risk management efforts. From 2003 to 2009, Mr. Svallin was a principal and head portfolio manager at Algert Coldiron Investors (ACI). Prior to joining ACI, Mr. Svallin worked as a quantitative research associate at RCM Capital Management and a senior consultant at FactSet Research Systems.

Mr. Svallin earned an MA in International Economics and Finance from Brandeis University, and a BS in Finance from Western New England University. He is a CFA charterholder and a member of the CFA Society of San Francisco.

0213-0942

Wei Li, Ph.D., CFA

Managing Director, Senior Portfolio Manager
Full Bio>
 
Investment Management Bio

Wei Li, Ph.D., CFA

Managing Director, Senior Portfolio Manager

Wei Li is a Managing Director and Senior Portfolio Manager for Charles Schwab Investment Management, Inc. (CSIM). She is responsible for the day-to-day co-management of the Schwab Active Equity Funds and Schwab Global Real Estate Fund.

Prior to joining CSIM in 2012, Ms. Li spent more than ten years at BlackRock, Inc. (formerly Barclays Global Investors), where she held a number of positions. From 2001 to 2009, she worked in various roles in the Global Advanced Active group, including portfolio management and quantitative research for both U.S. and international equity markets. After 2009, she worked in the defined contribution research and product development area for almost two years.

Ms. Li earned a Ph.D. in Statistics from the University of California, Berkeley, an MS in Mathematics from Iowa State University, and a BS in Computer Science from the University of Science and Technology of China. She is a CFA charterholder.

(0713-4842)

Schwab Active Equity Funds

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Contact Us

Call your Schwab Funds representative at 877-824-5615