Schwab ETFs Achieve New Milestone: $10 Billion In Assets Under Management
Investors searching for core, low-cost exchange-traded funds (ETFs) to use as the building blocks of their portfolios helped push Schwab ETFs to a new milestone: the suite of 15 equity and fixed income ETFs reached $10.02 billion in assets under management as of February 8, 2013. Charles Schwab Investment Management (CSIM) reached this threshold just slightly more than three years after launching its first proprietary ETFs in November 2009.
“For Schwab ETFs, what matters most is that we continue evolving to meet client demand for quality ETFs in key asset classes at an incredible value. And, we think that crossing the $10 billion mark in such a short period of time is just the beginning.”
“I want to thank investors for choosing Schwab ETFs as the right place for their hard-earned assets,” said Marie Chandoha, president of CSIM. “For Schwab ETFs, what matters most is that we continue evolving to meet client demand for quality ETFs in key asset classes at an incredible value. And, we think that crossing the $10 billion mark in such a short period of time is just the beginning.”
When Schwab debuted its first ETFs in 2009, the company broke new ground by offering them to clients commission-free online1. In September 2012, Schwab made investing in ETFs more affordable for clients again by slashing expense ratios on all Schwab ETFs – they each have the lowest operating expense ratios in their respective Lipper categories2.
Schwab’s 15 proprietary ETFs continue to be available commission-free online, and are part of the new $0 commission Schwab ETF OneSource™ featuring 105 ETFs from leading providers in major asset classes1. CSIM’s suite of ETFs spans the major asset classes, providing retail investors with the core building blocks of an investment portfolio. Eight of the funds now have a three-year track record, none have paid capital gains distributions to date, and all have competitive tracking errors. Three Schwab ETFs have over $1 billion in assets under management, including the Schwab Broad Market ETF (SCHB), Schwab International Equity ETF (SCHF) and Schwab U.S. Large-Cap ETF (SCHX). The Schwab Emerging Markets Equity ETF (SCHE) has $871 million in assets as of February 8, 2013.
|Domestic Equity ETFs|
|SCHB||Schwab U.S. Broad Market ETF||$1.630 Bn||0.04%|
|SCHX||Schwab U.S. Large-Cap ETF||$1.200 Bn||0.04%|
|SCHG||Schwab U.S. Large-Cap Growth ETF||$0.602 Bn||0.07%|
|SCHV||Schwab U.S. Large-Cap Value ETF||$0.479 Bn||0.07%|
|SCHD||Schwab U.S. Dividend Equity ETF||$0.658 Bn||0.07%|
|SCHM||Schwab U.S. Mid-Cap ETF||$0.430 Bn||0.07%|
|SCHA||Schwab U.S. Small-Cap ETF||$0.917 Bn||0.10%|
|SCHH||Schwab U.S. REIT ETF||$0.448 Bn||0.07%|
|International Equity ETFs|
|SCHF||Schwab International Equity ETF||$1.130 Bn||0.09%|
|SCHC||Schwab InternationalSmall-Cap Equity ETF||$0.231 Bn||0.20%|
|SCHE||Schwab EmergingMarkets Equity ETF||$0.871 Bn||0.15%|
|Fixed Income ETFs|
|SCHZ||Schwab U.S. Aggregate Bond ETF||$0.385 Bn||0.05%|
|SCHP||Schwab U.S. TIPS ETF||$0.578 Bn||0.07%|
|SCHO||Schwab Short-TermU.S. Treasury ETF||$0.255 Bn||0.08%|
|SCHR||Schwab Intermediate-TermU.S. Treasury ETF||$0.207 Bn||0.10%|
Schwab is an industry leader in serving ETF investors, with $152 billion in client ETF assets as of 12/31/12. The company offers a host of resources to help clients understand and choose ETFs that fit their investment needs, including the Schwab ETF Select List™; tutorials, research and tools available via Schwab’s online ETF center; workshops at local Schwab branches; and the Schwab ETF Education Exchange™, a new website aggregating educational content and market insights from ETF industry leaders.
About Charles Schwab Investment Management
Founded in 1989, Charles Schwab Investment Management, Inc. (CSIM), a subsidiary of The Charles Schwab Corporation, is one of the nation’s largest asset management companies with $219.3 billion in assets under management as of December 31, 2012. It is among the country’s largest money market fund managers and is the third-largest provider of retail index funds3. In addition to managing Schwab’s proprietary funds, CSIM provides oversight for the institutional-style, sub-advised Laudus Fund family. CSIM currently manages 76 mutual funds in addition to two separate account model portfolios, and 15 ETFs.
About Charles Schwab
The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with more than 300 offices and 8.8 million active brokerage accounts, 1.6 million corporate retirement plan participants, 874,000 banking accounts, and $2.01 trillion in client assets as of January 31, 2013. The Company was ranked ‘Highest in Investor Satisfaction With Self-Directed Services’ in the 2012 US Self-Directed Investor Satisfaction StudySM from J.D Power and Associates. Through its operating subsidiaries, the Company provides a full range of securities brokerage, banking, money management and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC, www.sipc.org), and affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; compliance and trade monitoring solutions; referrals to independent fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through Schwab Advisor Services. Its banking subsidiary, Charles Schwab Bank (member FDIC and an Equal Housing Lender), provides banking and lending services and products. More information is available at www.schwab.com and www.aboutschwab.com.
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1 Conditions Apply: Trades in ETFs available through Schwab ETF OneSource™ (including Schwab ETFs™) are available without commissions when placed online in a Schwab account. Service charges apply for trade orders placed through a broker ($25) or by automated phone ($5). An exchange processing fee applies to sell transactions. Certain types of Schwab ETF OneSource transactions are not eligible for the commission waiver, such as short sells and buys to cover (not including Schwab ETFs). Schwab reserves the right to change the ETFs we make available without commissions. All ETFs are subject to management fees and expenses. Please see pricing guide for additional information.
2 This claim is based on expense ratio data comparisons between Schwab and non-Schwab ETFs in their respective Lipper categories. Expense ratio data was obtained from Strategic Insight Simfund as of 12/31/12. ETFs in the same Lipper category may track different indexes, have differences in holdings, and show different performance. Competitors may offer more than one ETF in a Lipper category. Expense ratios are subject to change. Information has been sourced from Lipper, a Thomson Reuters Company (“Lipper Content”). All such information is protected by copyright: ©2012 THOMSON REUTERS. All rights reserved.
3 Strategic Insight, November 2012
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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 are bought and sold at market price, which may be higher or lower than the net asset value (NAV).
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