Schwab Expands Low-Cost Access to Fixed Income With Three New Exchange-Traded Funds

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.

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1 Source: Strategic Insight as of 9/30/19

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Erin Montgomery Charles Schwab [phone] [e-mail]