Schwab Expands Low-Cost Access to Fixed Income With Three New Exchange-Traded Funds
03 October 2019 - 10:00PM
Business Wire
Charles Schwab Investment Management, Inc. (CSIM), an asset
management arm of The Charles Schwab Corporation, is launching
three new fixed income exchange-traded funds (ETFs).
The new fixed income ETFs, whose 0.06% operating expense ratios
(OERs) are among the lowest in their respective projected
Morningstar categories, will begin trading on October 10, 2019. The
three funds are:
Ticker
Fund Name
Benchmark Index
OER
SCHJ
Schwab 1-5 Year Corporate Bond
ETF
Bloomberg Barclays U.S. 1-5 Year Corporate
Bond Index
0.06%
SCHI
Schwab 5-10 Year Corporate Bond
ETF
Bloomberg Barclays U.S. 5-10 Year
Corporate Bond Index
0.06%
SCHQ
Schwab Long-Term U.S. Treasury
ETF
Bloomberg Barclays U.S. Long Treasury
Index
0.06%
“Investors are increasingly looking to bond ETFs as a potential
source of diversification, liquidity and income, particularly in
this time of heightened stock market volatility,” said Jonathan de
St. Paer, president of CSIM. “As we approach the 10th anniversary
of the launch of our very first ETFs, we’re proud to add these new
ETFs to our roster of low-cost foundational ETFs, and to continue
helping investors build diversified investment portfolios.”
A leader in asset management, CSIM is the nation’s fifth-largest
ETF provider and currently manages more than $151 billion in ETF
assets1. For a complete list of the 25 Schwab ETFs, see here.
About Charles Schwab Investment Management, Inc.
Founded in 1989, Charles Schwab Investment Management, Inc., a
subsidiary of The Charles Schwab Corporation, is one of the
nation’s largest asset management companies, with more than $449
billion in assets under management as of September 30, 2019.
More information is available at schwabfunds.com.
About Charles Schwab
At 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 view
and download a prospectus by visiting schwabfunds.com/prospectus.
Please read the prospectus carefully before investing.
Investment value will fluctuate, and shares, when sold or
redeemed, 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.
Diversification does not eliminate the risk of market loss. An
investment in the Fund is not insured or guaranteed by any
government agency. Government backing applies only to the
government-issued bonds that make up the Fund, not the Fund
itself.
Charles Schwab Investment Management, Inc. (CSIM), is the
investment advisor for Schwab ETFs. Schwab ETFs are distributed by
SEI Investments Distribution Co. (SIDCO). SIDCO is not affiliated
with CSIM.
(1019-9XWX)
1 Source: Strategic Insight as of 9/30/19
View source version on
businesswire.com: https://www.businesswire.com/news/home/20191003005183/en/
Erin Montgomery Charles Schwab (212) 403-9271
Erin.Montgomery@schwab.com
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