Successful Client Adoption Further Indication that Schwab is a Leading Place for ETFs
Public Company Information:
SAN FRANCISCO--(BUSINESS WIRE)--Charles Schwab Investment Management, Inc. (CSIM) announced today that assets under management in its eight Schwab exchange-traded funds (ETF) exceeded $1 billion on April 6, 2010. Since the first four Schwab ETFs(tm) launched five months ago, they have seen significant adoption in the market, driven in part by low operating expense ratios and commission-free online trading in Schwab accounts.
"We’re delighted that individual investors and investment advisors are choosing to invest in Schwab ETFs," said Peter Crawford, senior vice president of Charles Schwab & Co., Inc. "They are finding value in our ETFs with their low expenses and commission-free trades online at Schwab as well as the vast education resources available at the ETF Center at Schwab.com."
The first four Schwab ETFs — the Schwab U.S. Broad Market ETF™ (SCHB), the Schwab U.S. Large-Cap ETF™ (SCHX), the Schwab U.S. Small-Cap ETF™ (SCHA) and the Schwab International Equity ETF™ (SCHF) were launched Nov. 3, 2009. The Schwab U.S. Large-Cap Growth ETF™ (SCHG) and the Schwab U.S. Large-Cap Value ETF™ (SCHV) were launched on Dec. 11, 2009. The Schwab Emerging Markets Equity ETF™ (SCHE) and the Schwab International Small-Cap Equity ETF™ (SCHC) began trading on Jan. 14, 2010.
Schwab ETFs track an array of domestic and international stock indexes. Schwab ETFs feature competitive fees and core investment offerings, which can make them an excellent option for investors seeking to build a diversified portfolio. In seven of eight Schwab ETFs, the operating expense ratios are the lowest as compared to competitors’ offerings in the same category.
As part of its comprehensive offering to investors, which also includes the new SMP-ETF offering launched on January 7, 2010, www.schwab.com/ETF - includes extensive educational materials available that explain the basics of ETFs, and how to invest in them and make trades online at Schwab. Specifically, Schwab’s ETF Center offers its clients tools such as an ETF Screener to search for ETFs that offer exposure to various markets, industries and sectors and a way to compare / view side-by-side snapshots of multiple ETFs.
“We believe the success of our initial set of ETFs, along with the vast resources that clients have access to on the Schwab ETF Center, further demonstrates that Schwab is a leading destination for investors seeking ETFs,” said Peter Crawford. “We expect to build on this success and intend to have more ETFs to offer investors in other key assets categories in the future.”
Investors should carefully consider information contained in the prospectus, including investment objectives, risks, charges and expenses. You can request a prospectus by calling Schwab at 800-435-4000. Please read the prospectus carefully before investing.
Some specialized exchange-traded funds can be subject to additional market risks. Investment returns will fluctuate and are subject to market volatility, such 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.
Online trades of Schwab ETFs are commission-free at Schwab, while trades of 3rd party ETFs are subject to commissions. Broker-assisted and Automated Phone trades are subject to service charges. Minimum $1,000 deposit is required to open most Schwab brokerage accounts. Waivers may apply. See the Charles Schwab Pricing Guide for details. All ETFs are subject to management fees and expenses. Securities, products, and services are not available in all countries and are subject to country-specific restrictions.
Diversification may not protect against investment loss.
Schwab ETFs distributed by SEI Investments Distribution Co (SIDCO). SIDCO is not affiliated with Charles Schwab & Co., Inc.
About Charles Schwab Investment Management
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 $199 billion in assets under management as of March 31, 2010. It is among the country's largest money market fund managers and is the third-largest provider of retail index funds. In addition to managing Schwab proprietary funds, CSIM provides oversight for the institutional-style, sub-advised Laudus Fund family. CSIM currently manages 78 mutual funds, 32 of which are actively-managed funds, in addition to four separate account model portfolios, and eight ETF offerings.
About Charles Schwab
The Charles Schwab Corporation (NYSE:SCHW) is a leading provider of financial services, with more than 300 offices and 7.8 million client brokerage accounts, 1.5 million corporate retirement plan participants, 753,000 banking accounts, and $1.4 trillion in client assets. 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. Named "Highest in Investor Satisfaction with Self-Directed Services" by J.D. Power and Associates in 2009, 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; referrals to independent fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through its Advisor Services. Its banking subsidiary, Charles Schwab Bank (member FDIC and an Equal Housing Lender), provides banking and mortgage services and products. More information is available at www.schwab.com. (0410-2363)
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