As a result of the fall of Schwab YieldPlus Fund shares in late 2007 and early 2008, investor lawsuits were pursued to recover losses.

The lawyers at Saiontz & Kirk are no longer accepting new Schwab YieldPlus cases. The information on this page is provided for information purposes only.

For individuals who have lost $10,000.00 or more as a result of an investment in Schwab YieldPlus funds, cases were pursued to recover losses suffered during late 2007 and early 2008 as a result of in appropriate investment decisions made by the fund managers.

Although the bond fund was promoted as a safe investment alternative to cash or money market funds, large positions were taken in risky mortgage-backed securities without proper diversification.

The Schwab YieldPlus lawyers at Saiontz & Kirk, P.A. previously reviewed cases on behalf of individuals who held shares in the following bond funds:

  • SWYSX: Schwab YieldPlus Funds Investor Shares
  • SWYPX: Schwab YieldPlus Funds Select Shares


Schwab YieldPlus fund was first introduced by Charles Schwab in 1999.  The discount broker initially offered other firms’ mutual funds, but moved into offering their own funds to provide a more steady stream of revenue.  Once they began offering proprietary funds, aggressive marketing allowed them to quickly grow the assets of their funds, and Schwab generated 23% of their revenue in 2007 off of service fees from their own Schwab and Laudus funds.

Schwab brokers advised clients with that the Yield Plus bond fund would provide steady income with limited risk, leading many investors to switch from short-term certificates of deposits (CDs) to the Schwab Yield Plus fund based on the false and misleading representations.

In an attempt to increase the bond fund’s performance in comparison to other funds in the same class, fund managers decided to heavily bet on mortgage backed securities, including risky subprime loans.  Despite stated fund objectives of seeking “high current income with minimal changes in share price”, more than half of the fund’s assets were placed in one industry, and many of the collateralized detbt

Following the collapse of the subprime mortgage market last summer, Schwab YieldPlus saw losses in excess of 25% during early 2008.  While Schwab blames the Yield Plus problems on the credit crunch, the responsibility for the fund losses falls squarely on the fund managers for making improper investment decisions and failing to diversify.

Although Schwab continues to offer shares in YieldPlus funds, and promote it on their website, they have divested other Schwab funds of their positions in YieldPlus.  At one time, other Schwab funds were the largest holder in Yield Plus, but they have indicated that none of their funds hold a position in YieldPlus as of the beginning of April.


The Schwab Yield Plus Law Firm of Saiontz & Kirk, P.A. are no longer pursuing potential lawsuits throughout the United States on behalf of investors who have suffered losses of $10,000 or more as a result of an investment in the bond fund.

New cases are no longer being accepted by Saiontz & Kirk, P.A. This page is maintained for informational purposes only.