Institution guide

Schwab

An excellent brokerage with cheap index funds and no minimums. It also has the one genuine trap in this set: the obvious international fund quietly owns less of the world than you would assume.

No minimums Strong service One gap to close

U.S. stocks International Bonds

An example 60/20/20 mix. Choose your own →

The funds

Verify before you buy. Expense ratios and index methodologies change, and the figures on this page were compiled in early 2026. Every fund name below links to the provider's own page — check the current number there. A tenth of a basis point will not change your life, but a fund quietly changing what it tracks might.

Schwab index mutual funds — no minimum
Sleeve	Fund	Index tracked	Expense
U.S. stocks	SWTSX Total Stock Market Index	Dow Jones U.S. Total Stock Market	0.03%
International	SWISX International Index Developed markets only — see below	FTSE Developed ex US	0.06%
Bonds	SWAGX U.S. Aggregate Bond Index	Bloomberg U.S. Aggregate Bond	0.04%

Schwab ETFs — an alternative route
Sleeve	Fund	Index tracked	Expense
U.S. stocks	SCHB U.S. Broad Market ETF	Dow Jones U.S. Broad Stock Market	0.03%
International	SCHF International Equity + SCHE Emerging Markets	FTSE Developed ex US / FTSE Emerging	0.06% / 0.11%
Bonds	SCHZ U.S. Aggregate Bond ETF	Bloomberg U.S. Aggregate Bond	0.03%

The SWISX problem

SWISX tracks a developed markets index. It holds Japan, the UK, France, Canada, Switzerland and Australia — and it does not hold China, Taiwan, India, South Korea or Brazil at all. Emerging markets are roughly a tenth of global equity value — and about a quarter of everything outside the U.S. That is not a rounding error; it is a quarter of the sleeve you thought you were buying, left out by default.

It also skews large-cap, omitting most international small caps. Compare that to VXUS, FTIHX or IXUS, all of which hold developed and emerging markets down to small caps. Someone who buys SWISX believing they have bought "international" owns meaningfully less of the world than they think.

Fix one — add an emerging markets fund. Hold SWISX alongside SCHE at roughly three parts to one. Accurate, but it makes this a four-fund portfolio and adds a rebalancing chore.

Fix two — use an ETF for the international sleeve. Buy VXUS or IXUS inside your Schwab account. Both trade commission-free there, and both are complete in one holding. This is the simplest answer.

Fix three — decide you do not want emerging markets. A legitimate position, held by some serious investors on governance and property-rights grounds. Just make sure it is a decision you made rather than one the fund menu made for you.

Other things worth knowing

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Uninvested cash earns very little by default

Schwab sweeps idle cash into a low-yield bank deposit rather than a money market fund. On a large settled balance that is a real cost. Buy a money market fund deliberately, or do not leave cash sitting.

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The brokerage itself is excellent

Service, branches, the app and the trading platform are all strong. If the international sleeve is handled with an ETF, this is a very good place to hold a three-fund portfolio.

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Fractional shares are limited

Schwab Stock Slices covers S&P 500 stocks, not ETFs generally. The index mutual funds accept any dollar amount, so use those if you want every cent invested.

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SWTSX and SWAGX are genuinely fine

The U.S. stock and bond sleeves have no asterisk. The gap is confined to international, and it is closable in one trade.

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