Charles Schwab Core Equity Fund Among Zacks' Top Mutual Funds You Can Buy for $100
When it comes to investing, there's not much that you can get for $100, but Zacks Investment Research has identified three mutual funds that you can buy for that price, including one from The Charles Schwab Corporation (SCHW) and another from BlackRock, Inc. (BLK).
In the case of San Francisco-based discount brokerage Charles Schwab, Zacks pointed to the Schwab Core Equity Fund, which invests largely in U.S. stocks and pays out dividends and capital gains annually. Zacks rates the fund a strong buy, noting that it is up 12.4% on a one-year basis. Some of the top holdings in the fund include Apple Inc. (AAPL), Microsoft Corporation (MSFT), Citigroup Inc. (C ), Alphabet Inc. (GOOG) and Pfizer Inc. (PFE). According to Morningstar, the fund is up 11.09% on a three-year basis and up 14.83% over a five-year period. The fund has an expense ratio of 0.73%, which Morningstar said is below average. With $2.4 billion in assets under management, the Schwab Core Equity Fund requires a minimum of $100 to get started investing. (Check out more about Schwab in the Charles Schwab review.)
Another top pick from Zacks is the BlackRock Equity Dividend mutual fund, which invests the majority of its assets in dividend-paying stocks that pay out more than the S&P 500 average. According to Zacks, the fund is focused on large companies and also invests in convertible securities as well as non-convertible preferred stocks and securities. Dividends are distributed quarterly, and investors need only $100 to get into the fund. According to Morningstar, the fund has $22 billion in assets under management and an expense ratio of 0.98%, which it said is below average. The top holdings in this fund – which is up 18.26% for one year, 11.65% on a three-year basis and 12.69% on a five-year basis – include JPMorgan Chase & Co. (JPM), Bank of America Corporation (BAC), Citigroup, Pfizer and Oracle Corporation (ORCL).
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The Schwab Core Equity fund isn't the only Schwab mutual fund that Zacks said investors should consider buying. In November, the research firm highlighted three other mutual funds – one that covers small-cap stocks, another that is invested in all equities and a third that invests in tax-free bonds – that will likely outperform their rivals in the future. Those mutual funds are the Schwab Small-Cap Equity Fund, which invests most of its money in small-cap companies that fall within the Russell 2000 Index; the Schwab MarketTrack All Equity Portfolio Fund, which aims to keep all of its assets invested in stocks; and the Schwab CA Tax-Free Bond Fund, which invests a large portion of its assets in municipal bonds with investment-grade ratings between AAA and BBB-, Zacks said.