Schwab Yield Plus Like A Money Market? Not!
Charles Schwab marketed its popular Schwab Yield Plus funds as money market equivalent. That was misleading.
Schwab representatives told investors that the Schwab Yield Plus Fund (SWYPX and SWYSX) fund provided a slightly better return than money market rates, but with minimal fluctuation in its value. Our clients, like many other Schwab investors, relied on those statements and put money into the Yield Plus funds that would otherwise have gone safely into CDs or money market funds. Now, it has come to light that Schwab changed the investment policies for the funds, and invested them into risky securities, including mortgage backed securities. The funds have plummeted in value as a result. Investors who thought they were doing the right thing by keeping their investments safe now face substantial losses.
A class action lawsuit has been filed in California, and that case is in its early stages. In our experience, however, individuals willing to hire their own investment fraud lawyers and file their own claims in a FINRA arbitration will almost always have a better chance of recovering more of their losses than they would by passively participating in a broad class action over which they have no control. We urge investors with Schwab Yield Plus losses to Contact Us or fill out our Free Evaluation to find out what is best for you.