Schwab Sector Funds™
 

Schwab offers two actively managed funds that target the long-term growth potential in two specific market sectors–Financial Services and Health Care. These funds offer investors the opportunity to add sector concentration or balance core holdings with a more focused investment.

Investment Objective

Both funds seek long-term capital growth by investing primarily in the stocks of U.S. companies within their respective sector–each of which comprises a number of related industries.

Investment Strategy

Schwab Financial Services Fund™

The Schwab Financial Services Fund pursues its goal of long-term capital growth by investing at least 80% of its assets in equity securities issued by U.S. companies in the financial services sector. The financial services sector comprises asset management firms, brokerage companies, commercial banks, financial services firms, insurance companies, real estate investment trusts (REITs), and savings and loan associations. The Fund may invest in companies of all sizes and seeks to be diversified within the sector.

Schwab Health Care Fund™

The Schwab Health Care Fund pursues its goal of long-term capital growth by investing at least 80% of its assets in equity securities issued by U.S. companies in the health care sector. The health care sector comprises drug and biotechnology companies, health care facilities operators, medical product manufacturers and suppliers, medical providers, and medical services firms. The Fund may invest in companies of all sizes and seeks to be diversified within the sector.

Schwab Sector Funds
Share Class Ticker Expenses1 Min. Investment
Financial Services Fund<br>Investor SWFFX 0.94% $100
Health Care Fund<br>Investor SWHFX 0.82% $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 Schwab Financial Services Fund and the Schwab Health Care Fund use Schwab Equity Ratings to aid their stock selection, representing Schwab's objective point of view on the 12-month performance outlook for approximately 3,000 of the largest U.S.-headquartered stocks (by market capitalization) ranked by a scale of A through F. Schwab Equity Ratings employ a disciplined methodology that evaluates each stock on the basis of investment criteria from four broad categories: fundamentals, valuation, momentum and risk. Generally, the Fund seeks to invest in stocks that are rated A or B at the time of purchase, but may purchase C-rated stocks for purposes of sector diversification.

Higher Return Potential

Both funds offer the potential to achieve higher returns (with a corresponding increase in risk) by concentrating investments within a single economic sector.

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 Funds. 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 actively managed funds, the Funds' allocations across industries, market capitalization and specific holdings will often vary from their respective benchmark, seeking to capitalize from selected over- and under-weightings 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

For more fund information, view tabs

Contact Us

Call your Schwab Funds representative at 877-824-5615