Schwab Asset Management, the asset management arm of The Charles
Schwab Corporation, announced today the reduction of the operating
expense ratios of 10 passively managed ETFs and actively managed
mutual funds. These changes are in addition to the fee reductions
that took place in December 2021 for five of the seven fixed income
ETFs listed below. Additionally, in February of this year the net
operating expense ratio of the Schwab International Opportunities
Fund (SWMIX), an actively managed mutual fund, was reduced to 0.83%
from 1.25%.*
“We continually review our cost-effective product suite to find
new opportunities to lower expenses for investors,” said David
Botset, Managing Director, Head of Equity Product Management and
Innovation at Schwab Asset Management. “We’re committed to
delivering products that are affordable, accessible and scalable,
and very pleased to be able to continue to make our clients the
beneficiaries of our strategic focus.”
Schwab Passively Managed Funds and Expense Ratio
Changes
Name of Fund (Ticker)
AUM ($millions) as of
6/16/2022
Current Operating Expense
Ratio
New
Operating Expense
Ratio
Effective Date
Schwab Short-Term U.S. Treasury ETF
(SCHO)
$8,734
0.04%
0.03%
7/1/2022
Schwab Intermediate-Term U.S. Treasury ETF
(SCHR)
$6,982
0.04%
0.03%
7/1/2022
Schwab Long-Term U.S. Treasury ETF
(SCHQ)
$90
0.04%
0.03%
7/1/2022
Schwab 1-5 Year Corporate Bond ETF
(SCHJ)
$362
0.04%
0.03%
7/1/2022
Schwab 5-10 Year Corporate Bond ETF
(SCHI)
$387
0.04%
0.03%
7/1/2022
Schwab U.S. Aggregate Bond ETF (SCHZ)
$7,480
0.04%
0.03%
7/1/2022
Schwab U.S. TIPS ETF (SCHP)
$15,588
0.05%
0.04%
7/1/2022
Schwab Actively Managed Funds and Expense Ratio
Changes
Name of Fund (Ticker)
AUM ($millions) as of
6/16/2022
Current Net Operating Expense
Ratio*
New Net Operating
Expense Ratio*
Effective Date
Schwab Global Real Estate Fund (SWASX)
$290
1.05%
0.75%
6/27/2022
Schwab Tax-Free Bond Fund (SWNTX)
$605
0.49%
0.38%
7/1/2022
Schwab California Tax-Free Bond Fund
(SWCAX)
$391
0.49%
0.38%
7/1/2022
*As stated in the prospectus, the investment adviser and its
affiliates have agreed to limit the total annual fund operating
expenses (excluding interest, taxes and certain non-routine
expenses) of the fund 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.
About Schwab Asset Management
One of the industry’s largest and most experienced asset
managers, Schwab Asset Management offers a focused lineup of
competitively priced ETFs, mutual funds and separately managed
account strategies designed to serve the central needs of most
investors. By operating through clients’ eyes, and putting them at
the center of our decisions, we aim to deliver exceptional
experiences to investors and the financial professionals who serve
them. As of March 31, 2022, Schwab Asset Management managed
approximately $623.1 billion on a discretionary basis and $35.5
billion on a non-discretionary basis. More information is available
at www.schwabassetmanagement.com.
About Charles Schwab
At Charles Schwab we believe in the power of investing to help
individuals create a better tomorrow. We have a history of
challenging the status quo in our industry, innovating in ways that
benefit investors and the advisors and employers who serve them,
and championing our clients’ goals with passion and integrity.
More information is available at www.aboutschwab.com. Follow us
on Twitter, Facebook, YouTube and LinkedIn.
Disclosures:
Investors should consider carefully information contained in
the prospectus, or if available, the summary prospectus, including
investment objectives, risks, charges and expenses. You can obtain
a prospectus, or if available, a summary prospectus by visiting
schwabassetmanagement.com/prospectus. Please read it carefully
before investing.
Investment returns will fluctuate and are subject to market
volatility, so that an investor’s shares, when redeemed or sold,
may be worth more or less than their original cost. Unlike mutual
funds, shares of ETFs are not individually redeemable directly with
the ETF. Shares of ETFs are bought and sold at market price, which
may be higher or lower than the net asset value (NAV).
Fixed income securities are subject to increased loss of
principal during periods of rising interest rates. Fixed income
investments are subject to various other risks including changes in
credit quality, market valuations, liquidity, prepayments, early
redemption, corporate events, tax ramifications and other
factors.
Tax exempt bonds are not necessarily a suitable investment for
all persons. Information related to a security's tax-exempt status
(federal and in-state) is obtained from third parties and Schwab
Asset Management does not guarantee its accuracy. Tax-exempt income
may be subject to the Alternative Minimum Tax (AMT). Capital
appreciation from bond funds and discounted bonds may be subject to
state or local taxes. Capital gains are not exempt from federal
income tax.
International investments involve additional risks, which
include differences in financial accounting standards, currency
fluctuations, geopolitical risk, foreign taxes and regulations, and
the potential for illiquid markets. Investing in emerging markets
may accentuate these risks.
Risks of investing in REITs are similar to those associated with
direct ownership of real estate, such as changes in real estate
values and property taxes, interest rates, cash flow of underlying
real estate assets, supply and demand, and the management skill and
credit worthiness of the issuer. Investing in REITs may pose
additional risks such as real estate industry risk, interest rate
risk, risks related to the uncertainty of and compliance with
certain tax regime rules, and liquidity risk.
Schwab Asset Management is the dba name for Charles Schwab
Investment Management, Inc., the investment adviser for Schwab
Funds and Schwab ETFs. Schwab Funds are distributed by Charles
Schwab & Co., Inc. (Schwab) Member SIPC. Schwab ETFs are
distributed by SEI Investments Distribution Co. (SIDCO). Schwab
Asset Management and Schwab are separate but affiliated companies
and subsidiaries of The Charles Schwab Corporation and not
affiliated with SIDCO.
(0622-2X6B)
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Christine Hudacko Charles Schwab 415-961-3790
Charles Schwab (NYSE:SCHW)
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