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Schwab Target Date Funds

Your key to a diversified retirement solution

Seven funds designed to help keep your retirement investments properly allocated over your lifetime.

Why Schwab Target Funds?

  • Rebalancing—Your investment is reallocated based on your target date to help meet your retirement goals.
  • Good Value—Your fund is competitively priced with zero top level fees1 and no transaction fees2 so your investment goes further.
  • Expert Management—Your portfolio is a carefully selected combination of actively-managed and index Schwab Funds®, Laudus Funds®, and third-party funds.

What are Schwab Target Funds?

Schwab Target Funds are mutual funds that are professionally managed according to your approximate target date for retirement. Each target fund has its own investment objective and automatically adjusts its asset allocation to meet your changing financial needs over time. The funds are built with the expectation that you will start gradual withdrawals of fund assets on the target date, to begin covering expenses in retirement. The principal value of the fund is not guaranteed at any time, and will continue to fluctuate up to and after the target date.

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Schwab Target Funds

The target date is the date where investors are expected to begin gradual withdrawal of fund assets. For an investor planning to retire at age 65 in 2040, for example, the target allocation for the Schwab Target 2040 Fund (when this investor is 65) will be approximately 40% stocks, 53% bonds and 7% cash investments (see chart above). The fund will continue to increase its allocation to fixed income until the year 2060. In 2060, the fund would have a static allocation of 25% stocks, 68% bonds and 7% cash investments.

When you are years away from retirement—A higher proportion of your assets are invested in stocks to provide more growth potential, and the opportunity to build your assets and keep up with inflation. The specific allocation will depend on how far away you are from your target date.

When you are closer to retirement—A higher proportion of your assets are invested in bonds and cash investments to provide the increased stability and income you need in preparation for retirement. At your target date, your fund will be invested in approximately 40% stocks, 53% bonds and 7% cash investments.

When you are in retirement—Once your target date is reached, the assets in your fund continue to be invested more conservatively. The bond allocation increases and the stock exposure decreases to help protect your investment while still providing some opportunity for growth. Twenty years after your target date, your fund will reach a static allocation of 25% stocks, 68% bonds and 7% cash investments.

Net Expense Ratio (%)
Retirement DateSymbolDescriptionFund1Category Average3
2008 - 2012SWBRXSchwab Target 2010 Fund0.26 0.516Trade
2013 - 2017SWGRXSchwab Target 2015 Fund0.28 0.574Trade
2018 - 2022SWCRXSchwab Target 2020 Fund0.29 0.599Trade
2023 - 2027SWHRXSchwab Target 2025 Fund0.35 0.653Trade
2028 - 2032SWDRXSchwab Target 2030 Fund0.42 0.668Trade
2033 - 2037SWIRXSchwab Target 2035 Fund0.47 0.675Trade
2038 - 2042SWERXSchwab Target 2040 Fund0.50 0.691Trade
2043 - 2047SWMRXSchwab Target 2045 Fund0.54 0.694Trade
2048 - 2052SWNRXSchwab Target 2050 Fund0.56 0.701Trade
2053 - 2057SWORXSchwab Target 2055 Fund0.58 0.699Trade
2058 - 2062SWPRXSchwab Target 2060 Fund0.59 0.703Trade
2063 or laterSWQRXSchwab Target 2065 Fund0.59 0.693Trade

1Schwab and the investment adviser have agreed to maintain the "net operating expenses" of each of the Funds at 0.00% for so long as the investment adviser serves as adviser to the Funds. This agreement is limited to each Fund's direct operating expenses and, therefore, does not apply to acquired fund fees and expenses, which are indirect.

2The investment adviser and its affiliates have agreed to limit the total annual fund operating expenses (excluding taxes and certain non-routine expenses) of the fund to 0.00% for so long as the investment adviser serves as the adviser to the fund. This agreement may only be amended or terminated with the approval of the fund's Board of Trustees. This agreement is limited to the fund's direct operating expenses and does not apply to AFFE.

3Morningstar Category Average as of 01/31/2024. Target - Date 2000-2010, Target - Date 2015, Target - Date 2020, Target - Date 2025, Target - Date 2030, Target - Date 2035, Target - Date 2040, Target - Date 2045, Target - Date 2050, Target - Date 2055 and Target - Date 2060+

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Data source identification

The values of the Funds will fluctuate up to and after the target dates. There is no guarantee the Funds will provide adequate income at or through retirement.

The Funds are subject to market volatility and risks associated with the underlying investments. Risks include exposure to international and emerging markets, small company and sector equity securities, and fixed income securities subject to changes in inflation, market valuations, liquidity, prepayments, and early redemption.

The Laudus Group® of Funds includes the Laudus Mondrian Funds and Laudus U.S. Large Cap Growth Fund, which are part of the Laudus Trust and distributed by ALPS Distributors, Inc.; and the Laudus MarketMasters Funds®, which are part of the Schwab Capital Trust and distributed by Charles Schwab & Co., Inc. Charles Schwab & Co., Inc. and ALPS Distributors, Inc. are unaffiliated entities.

Schwab Affiliate Funds include Schwab Funds and Laudus Funds. Schwab Funds and Laudus Funds are advised by Charles Schwab Investment Management, Inc., an affiliate of Charles Schwab & Co., Inc.

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