Schwab High Yield Municipal Bond Fund
Summary
Objective
The fund seeks to generate interest income that is not subject to federal income tax.
Highlights
- Actively managed fund that provides investors with access to the high yield municipal bond market with a more conservative fund profile by maintaining at least a 60% allocation to investment grade holdings1
- Seeks to provide investors with guardrails while investing in high yield municipal bonds as it has historically reduced volatility relative to its primary benchmark2
- Historically has outperformed its primary benchmark in down markets2
- Experienced portfolio managers, benefiting from extensive credit research, apply proprietary investment techniques and risk analyses in making investment decisions for the fund
- No investment minimums or loads
- SWHYX is the successor to the investment performance of the Wasmer Schroeder High Yield Municipal Fund (Predecessor Fund) as a result of the reorganization of the Predecessor Fund into SWHYX on August 10, 2020.
Fund Details
Fund Profile
| Fund Inception | 03/31/2014 | |
|---|---|---|
| Total Net Assets As of 09/23/2020 |
09/23/2020 | $62,357,678.36 |
| Index Name | Bloomberg Barclays Municipal High Yield Index | |
| Shares Outstanding As of 09/23/2020 |
09/23/2020 | 5,984,625 |
| NAV As of 09/23/2020 |
09/23/2020 | $10.42 |
| Total Holdings As of 06/30/2020 |
06/30/2020 | 104 |
| Portfolio Turnover Rate As of 08/31/2020 |
08/31/2020 | 49.96% |
| Morningstar Category | US Fund High Yield Muni | |
| Management Style | Active |
Yields
| SEC Yield (30 Day) As of 09/22/2020 |
09/22/2020 | 2.73% |
|---|---|---|
| Distribution Yield (TTM) As of 08/31/2020 |
08/31/2020 | 3.72% |
| Average Yield to Maturity As of 06/30/2020 |
06/30/2020 | 4.33% |
For additional information about the indices and terms shown, please visit www.schwabfunds.com/glossary
Fees & Minimum
| Gross Expense Ratio † | 0.730% | |
|---|---|---|
| Net Expense Ratio † | 0.600% | |
| Minimum Initial Investment | No Minimum | |
| 12b-1 Fee | 0.000% |
Fund Characteristics
| Weighted Average Maturity As of 06/30/2020 |
06/30/2020 | 5.8 years |
|---|---|---|
| Weighted Average Coupon As of 06/30/2020 |
06/30/2020 | 4.54% |
| Effective Duration As of 06/30/2020 |
06/30/2020 | 7.6 years |
| Standard Deviation (3 Yr) As of 08/31/2020 |
08/31/2020 | 7.32% |
Performance
Total Return
Monthly
-
SWHYX
Cumulative Returns (%)
- 1 Month
- +0.16
- 3 Month
- +5.29
- YTD
- -2.67
Annualized Returns (%)
- 1 Year
- -1.92
- 3 Year
- +2.77
- 5 Year
- +3.96
- 10 Year
- --
- Inception
- +5.16
-
Bloomberg Barclays Municipal High Yield Index (Index)
Cumulative Returns (%)
- 1 Month
- +0.26
- 3 Month
- +7.06
- YTD
- +0.27
Annualized Returns (%)
- 1 Year
- +0.96
- 3 Year
- +5.60
- 5 Year
- +6.42
- 10 Year
- +6.03
-
Bloomberg Barclays US Municipal Bond Index (Index)
Cumulative Returns (%)
- 1 Month
- -0.47
- 3 Month
- +2.04
- YTD
- +3.31
Annualized Returns (%)
- 1 Year
- +3.24
- 3 Year
- +4.09
- 5 Year
- +3.99
- 10 Year
- +3.98
-
US Fund High Yield Muni (Morningstar Category)
Cumulative Returns (%)
- 1 Month
- +3.18
- 3 Month
- +3.33
- YTD
- -2.38
Annualized Returns (%)
- 1 Year
- +0.35
- 3 Year
- +3.64
- 5 Year
- +4.09
- 10 Year
- --
| Description | Cumulative Returns (%) | Annualized Returns (%) | |||||||
|---|---|---|---|---|---|---|---|---|---|
| 1 Month | 3 Month | YTD | 1 Year | 3 Year | 5 Year | 10 Year | Inception | ||
| SWHYX | +0.16 | +5.29 | -2.67 | -1.92 | +2.77 | +3.96 | -- | +5.16 | |
| Bloomberg Barclays Municipal High Yield Index (Index) | +0.26 | +7.06 | +0.27 | +0.96 | +5.60 | +6.42 | +6.03 | ||
| Bloomberg Barclays US Municipal Bond Index (Index) | -0.47 | +2.04 | +3.31 | +3.24 | +4.09 | +3.99 | +3.98 | ||
| US Fund High Yield Muni (Morningstar Category) | +3.18 | +3.33 | -2.38 | +0.35 | +3.64 | +4.09 | -- | ||
Annualized returns for periods 1 yr+/cumulative returns for periods less than 1 yr.
The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted.
Quarterly
-
SWHYX
Average Annual Returns (%)
- 1 Year
- -2.99
- 3 Year
- +2.24
- 5 Year
- +3.51
- 10 Year
- --
- Inception
- +4.75
-
Bloomberg Barclays Municipal High Yield Index (Index)
Average Annual Returns (%)
- 1 Year
- +1.02
- 3 Year
- +5.27
- 5 Year
- +5.77
- 10 Year
- +6.12
-
Bloomberg Barclays US Municipal Bond Index (Index)
Average Annual Returns (%)
- 1 Year
- +4.45
- 3 Year
- +4.22
- 5 Year
- +3.93
- 10 Year
- +4.22
-
US Fund High Yield Muni (Morningstar Category)
Average Annual Returns (%)
- 1 Year
- +0.35
- 3 Year
- +3.64
- 5 Year
- +4.09
- 10 Year
- +5.13
| Description | Average Annual Returns (%) | |||||
|---|---|---|---|---|---|---|
| 1 Year | 3 Year | 5 Year | 10 Year | Inception | ||
| SWHYX | -2.99 | +2.24 | +3.51 | -- | +4.75 | |
| Bloomberg Barclays Municipal High Yield Index (Index) | +1.02 | +5.27 | +5.77 | +6.12 | ||
| Bloomberg Barclays US Municipal Bond Index (Index) | +4.45 | +4.22 | +3.93 | +4.22 | ||
| US Fund High Yield Muni (Morningstar Category) | +0.35 | +3.64 | +4.09 | +5.13 | ||
Annualized returns for periods 1 yr+/cumulative returns for periods less than 1 yr.
The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted.
After Tax Returns
Pre-Liquidation
SWHYX NAV Return
-
SEC Pre-Liquidation
Average Annual Returns (%)
- 1 Year
- -3.84
- 3 Year
- +1.87
- 5 Year
- +3.17
- 10 Year
- --
- Inception
- +4.38
-
SEC Post-Liquidation
Average Annual Returns (%)
- 1 Year
- -0.92
- 3 Year
- +2.31
- 5 Year
- +3.36
- 10 Year
- --
- Inception
- +4.36
-
Tax Cost Ratio
Average Annual Returns (%)
- 1 Year
- +0.20
- 3 Year
- +0.10
- 5 Year
- +0.10
- 10 Year
- --
- Inception
- +0.08
| Description | Average Annual Returns (%) | |||||
|---|---|---|---|---|---|---|
| 1 Year | 3 Year | 5 Year | 10 Year | Inception | ||
| SEC Pre-Liquidation | -3.84 | +1.87 | +3.17 | -- | +4.38 | |
| SEC Post-Liquidation | -0.92 | +2.31 | +3.36 | -- | +4.36 | |
| Tax Cost Ratio | +0.20 | +0.10 | +0.10 | -- | +0.08 | |
After tax returns are based on highest Federal income tax bracket. State taxes are not included. Pre-liquidation figures include taxes on fund's distributions of dividends and capital gains. Tax Cost Ratio represents the percentage-point reduction in returns that results from Federal income taxes (before shares in the fund are sold, and assuming the highest Federal tax bracket).
US Fund High Yield Muni NAV Returns (Morningstar Category)
-
SEC Pre-Liquidation
Average Annual Returns (%)
- 1 Year
- -0.61
- 3 Year
- +3.33
- 5 Year
- +3.87
- 10 Year
- +4.99
-
SEC Post-Liquidation
Average Annual Returns (%)
- 1 Year
- +1.08
- 3 Year
- +3.43
- 5 Year
- +3.87
- 10 Year
- +4.90
-
Tax Cost Ratio
Average Annual Returns (%)
- 1 Year
- +0.03
- 3 Year
- +0.02
- 5 Year
- +0.03
- 10 Year
- --
| Description | Average Annual Returns (%) | |||||
|---|---|---|---|---|---|---|
| 1 Year | 3 Year | 5 Year | 10 Year | Inception | ||
| SEC Pre-Liquidation | -0.61 | +3.33 | +3.87 | +4.99 | ||
| SEC Post-Liquidation | +1.08 | +3.43 | +3.87 | +4.90 | ||
| Tax Cost Ratio | +0.03 | +0.02 | +0.03 | -- | ||
Post-Liquidation
SWHYX NAV Return
-
SEC Pre-Liquidation
Average Annual Returns (%)
- 1 Year
- -3.84
- 3 Year
- +1.87
- 5 Year
- +3.17
- 10 Year
- --
- Inception
- +4.38
-
SEC Post-Liquidation
Average Annual Returns (%)
- 1 Year
- -0.92
- 3 Year
- +2.31
- 5 Year
- +3.36
- 10 Year
- --
- Inception
- +4.36
-
Tax Cost Ratio
Average Annual Returns (%)
- 1 Year
- +0.20
- 3 Year
- +0.10
- 5 Year
- +0.10
- 10 Year
- --
- Inception
- +0.08
| Description | Average Annual Returns (%) | |||||
|---|---|---|---|---|---|---|
| 1 Year | 3 Year | 5 Year | 10 Year | Inception | ||
| SEC Pre-Liquidation | -3.84 | +1.87 | +3.17 | -- | +4.38 | |
| SEC Post-Liquidation | -0.92 | +2.31 | +3.36 | -- | +4.36 | |
| Tax Cost Ratio | +0.20 | +0.10 | +0.10 | -- | +0.08 | |
After tax returns are based on highest Federal income tax bracket. State taxes are not included. Pre-liquidation figures include taxes on fund's distributions of dividends and capital gains. Tax Cost Ratio represents the percentage-point reduction in returns that results from Federal income taxes (before shares in the fund are sold, and assuming the highest Federal tax bracket).
US Fund High Yield Muni NAV Returns (Morningstar Category)
-
SEC Pre-Liquidation
Average Annual Returns (%)
- 1 Year
- -0.61
- 3 Year
- +3.33
- 5 Year
- +3.87
- 10 Year
- +4.99
-
SEC Post-Liquidation
Average Annual Returns (%)
- 1 Year
- +1.08
- 3 Year
- +3.43
- 5 Year
- +3.87
- 10 Year
- +4.90
-
Tax Cost Ratio
Average Annual Returns (%)
- 1 Year
- +0.03
- 3 Year
- +0.02
- 5 Year
- +0.03
- 10 Year
- --
| Description | Average Annual Returns (%) | |||||
|---|---|---|---|---|---|---|
| 1 Year | 3 Year | 5 Year | 10 Year | Inception | ||
| SEC Pre-Liquidation | -0.61 | +3.33 | +3.87 | +4.99 | ||
| SEC Post-Liquidation | +1.08 | +3.43 | +3.87 | +4.90 | ||
| Tax Cost Ratio | +0.03 | +0.02 | +0.03 | -- | ||
Rank within Category
Morningstar Category - US Fund High Yield Muni
-
TOP 25%
- 2020 YTD
Yearly Performance
- 2019
- 2018
- 2017
- 2016
- 2015
- 2014
- 2013
- 2012
- 2011
-
- 2020 YTD
Yearly Performance
- 2019
- +9.14
- 2018
- 2017
- +8.26
- 2016
- +1.56
- 2015
- 2014
- 2013
- 2012
- 2011
-
- 2020 YTD
Yearly Performance
- 2019
- 2018
- +1.10
- 2017
- 2016
- 2015
- +4.24
- 2014
- 2013
- 2012
- 2011
-
BOTTOM 25%
- 2020 YTD
- -2.67
Yearly Performance
- 2019
- 2018
- 2017
- 2016
- 2015
- 2014
- 2013
- 2012
- 2011
| Rank | 2020 YTD | Yearly Performance | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |||
| TOP 25% | |||||||||||
| +9.14 | +8.26 | +1.56 | |||||||||
| +1.10 | +4.24 | ||||||||||
| BOTTOM 25% | -2.67 | ||||||||||
Rank within Category compares this fund's total annual return to that of other funds in the same category and its figures are not adjusted for any fees and expenses, loads, sales charges, or taxes. See the Monthly Returns table for load-adjusted performance.
© 2020 Morningstar. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
Cumulative Growth of a $10,000 Investment
| SWHYX (Fund) | $13,818 | |
|---|---|---|
| Bloomberg Barclays Municipal High Yield Index (Index) | $14,209 | |
| Bloomberg Barclays Municipal Bond Index (Index) | $12,815 | |
| High Yield Muni (Morningstar Category) | $13,563 | |
| Worst Three Months Return (1/31/2020 - 4/30/2020) | -11.56 | |
| Best Three Months Return (4/30/2020 - 7/31/2020) | +8.64 |
This graph represents the growth of a hypothetical investment of $10,000. It assumes reinvestment of dividends and capital gains, and does not reflect sales loads, redemption fees or the effects of taxes on any capital gains and/or distributions. If the inception date of the Index is less than the time period shown above, the Since Inception period is shown. Best and Worst Return cover the timeframe of the chart.
Price Performance
Portfolio
Top Holdings
-
--
- Name
- SOUTHCENTRAL MINN MULTI-CNTY H
- Percent of Assets (%)
- 7.12%
- Market Value
- $4.8M
-
--
- Name
- FIDELITY GOVT SECS FD LTD
- Percent of Assets (%)
- 2.13%
- Market Value
- $1.4M
-
--
- Name
- CHICAGO ILL
- Percent of Assets (%)
- 2.05%
- Market Value
- $1.4M
-
--
- Name
- WISCONSIN ST HEALTH & EDL FACS
- Percent of Assets (%)
- 1.84%
- Market Value
- $1.2M
-
--
- Name
- PALOMAR HEALTH CALIF REV
- Percent of Assets (%)
- 1.80%
- Market Value
- $1.2M
-
--
- Name
- CHICAGO ILL
- Percent of Assets (%)
- 1.63%
- Market Value
- $1.1M
-
--
- Name
- MARYLAND ST ECONOMIC DEV CORP
- Percent of Assets (%)
- 1.63%
- Market Value
- $1.1M
-
--
- Name
- NEW JERSEY ST TRANSN TR FD AUT
- Percent of Assets (%)
- 1.61%
- Market Value
- $1.1M
-
--
- Name
- SOUTH JERSEY TRANSN AUTH N J T
- Percent of Assets (%)
- 1.61%
- Market Value
- $1.1M
-
--
- Name
- NEW JERSEY ECONOMIC DEV AUTH R
- Percent of Assets (%)
- 1.59%
- Market Value
- $1.1M
| Symbol | Name | Percent of Assets (%) | Market Value | ||
|---|---|---|---|---|---|
| -- | SOUTHCENTRAL MINN MULTI-CNTY H | 7.12%
|
$4.8M | ||
| -- | FIDELITY GOVT SECS FD LTD | 2.13%
|
$1.4M | ||
| -- | CHICAGO ILL | 2.05%
|
$1.4M | ||
| -- | WISCONSIN ST HEALTH & EDL FACS | 1.84%
|
$1.2M | ||
| -- | PALOMAR HEALTH CALIF REV | 1.80%
|
$1.2M | ||
| -- | CHICAGO ILL | 1.63%
|
$1.1M | ||
| -- | MARYLAND ST ECONOMIC DEV CORP | 1.63%
|
$1.1M | ||
| -- | NEW JERSEY ST TRANSN TR FD AUT | 1.61%
|
$1.1M | ||
| -- | SOUTH JERSEY TRANSN AUTH N J T | 1.61%
|
$1.1M | ||
| -- | NEW JERSEY ECONOMIC DEV AUTH R | 1.59%
|
$1.1M |
Security Types
| Security Types | Percent of Portfolio (%) | |
|---|---|---|
| Revenue Bonds | 82.00%
|
|
| GO Bonds | 16.00%
|
|
| Other | 2.00%
|
Credit Ratings
| Credit Ratings | Bonds (%) | |
|---|---|---|
| BBB | 39.00%
|
|
| A | 21.00%
|
|
| Unrated Securities | 17.00%
|
|
| BB | 15.00%
|
|
| AA | 5.00%
|
|
| Cash | 2.00%
|
|
| AAA | 1.00%
|
Based on the middle rating of Moody’s, S&P and Fitch; when a rating from only two agencies is available, the lower is used; when only one agency rates a bond, that rating is used. In cases where explicit bond level ratings may not be available, other sources may be used to classify securities by credit quality.
Asset Allocation
| Asset Class | Percent of Portfolio (%) | |
|---|---|---|
| Bonds | 100.00%
|
The percentage of assets as shown may not equal 100% due to unsettled trades.
Maturity Breakdown
| Maturity | Bonds (%) | |
|---|---|---|
| Less than 1 Year | 12.00%
|
|
| 1 to 3 Years | 9.00%
|
|
| 3 to 5 Years | 23.00%
|
|
| 5 to 7 Years | 19.00%
|
|
| 7 to 10 Years | 34.00%
|
|
| 10 Years or More | 3.00%
|
Distributions
Distributions
-
Ex-Date: 08/31/2020
- Record Date
- 08/28/2020
- Payable Date
- 08/31/2020
- Income
- 0.0262
- Short Term Capital Gain
- --
- Long Term Capital Gain
- --
- Return of Capital
- --
- Total Distribution
- 0.026200000
-
Ex-Date: 07/31/2020
- Record Date
- 07/30/2020
- Payable Date
- 07/31/2020
- Income
- 0.0683
- Short Term Capital Gain
- --
- Long Term Capital Gain
- --
- Return of Capital
- --
- Total Distribution
- 0.068304970
-
Ex-Date: 06/30/2020
- Record Date
- 06/29/2020
- Payable Date
- 06/30/2020
- Income
- 0.0251
- Short Term Capital Gain
- --
- Long Term Capital Gain
- --
- Return of Capital
- --
- Total Distribution
- 0.025079440
-
Ex-Date: 05/29/2020