Any investors who are searching for Index funds should take a look at Schwab 1000 Index (SNXFX). While this fund is not tracked by the Zacks Mutual Fund Rank, we were able to examine other factors like performance, volatility, and cost.

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SNXFX finds itself in the Schwab Funds family, based out of San Francisco, CA. Schwab 1000 Index debuted in April of 1991. Since then, SNXFX has accumulated assets of about $18.44 billion, according to the most recently available information. A team of investment professionals is the fund’s current manager.

Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 15.36%, and is in the middle third among its category peers. If you’re interested in shorter time frames, do not dismiss looking at the fund’s 3 -year annualized total return of 10.69%, which places it in the middle third during this time-frame.

It is important to note that the product’s returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund’s [%] sale charge. If sales charges were included, total returns would have been lower.

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When looking at a fund’s performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Over the past three years, SNXFX’s standard deviation comes in at 17.52%, compared to the category average of 16.88%. The fund’s standard deviation over the past 5 years is 18.56% compared to the category average of 18.14%. This makes the fund more volatile than its peers over the past half-decade.

With a 5-year beta of 1.02, the fund is likely to be as volatile as the market average. Alpha is an additional metric to take into consideration, since it represents a portfolio’s performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. Over the past 5 years, the fund has a negative alpha of -0.54. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.

As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, SNXFX is a no load fund. It has an expense ratio of 0.05% compared to the category average of 0.75%. So, SNXFX is actually cheaper than its peers from a cost perspective.

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