If you want maximum gains, go for our growth portfolio, which mainly uses Schwab-run ETFs. The funds in this basket feature the highest mix of stocks (80%) compared with bonds (20%). U.S. stocks have returned about 10% a year, on average, since 1926, including dividends. That trounces the long-term returns of bonds. But it's unusual for stocks to deliver the average return in any given year, and they have shown they can lose more than one-third of their value in short order. Buy this portfolio only if you won't sell in a panic during a market downturn, and aim to hold it for at least a decade.
The 80% allotment to stocks makes this our most-aggressive bundle. Schwab clients can build this portfolio, with its hefty stakes in small- and mid-cap ETFs, without paying commissions.
- CURRENT YIELD: 2.1%
|Name||Ticker||% of portfolio|
|Schwab U.S. Large-Cap||SCHX||25|
|Schwab U.S. Small-Cap||SCHA||25|
|Schwab U.S. Dividend Equity||SCHD||10|
|SPDR S&P 400 Midcap Value||MDYV||10|
|Schwab International Equity||SCHF||5|
|Schwab International Small Cap Equity||SCHC||5|
|Schwab U.S. Aggregate Bond||SCHZ||15|
|Pimco Investment Grade Corporate Bond Index||CORP||5|