Schwab U.S. Aggregate Bond ETF™ Provides Broad Exposure to U.S. Taxable Bond Market
Public Company Information:
SAN FRANCISCO--(BUSINESS WIRE)--Charles Schwab, a marketplace leader of ETFs, today announced the launch of Schwab U.S. Aggregate Bond ETF™ (SCHZ), the fourteenth and most recent fund to join Schwab’s line up of proprietary ETFs. The Schwab U.S. Aggregate Bond ETF offers low-cost, single-investment exposure to four major sectors of the investment grade, taxable U.S. bond market: Treasuries, government agencies, corporate and securitized bonds.
The Schwab U.S. Aggregate Bond ETF began trading on July 14, 2011. It has the lowest operating expense ratio among ETFs in the Morningstar Intermediate Term Bond category1. Like all other Schwab ETFs™, the fund can be bought and sold commission-free** online in Schwab accounts.
“We have seen tremendous demand for a single vehicle that provides a core, diversified U.S. fixed income allocation, and the Schwab U.S. Aggregate Bond ETF seeks to do just that, at an exceptional value,” said John Sturiale, vice president of product management at Schwab. “We are pleased to offer investors exposure to the overall U.S. bond market through the lowest-cost ETF in its Morningstar asset category.”
The Schwab U.S. Aggregate Bond ETF seeks to track, as closely as possible, before fees and expenses, the total return of the Barclays Capital U.S. Aggregate Bond IndexSM. The index is a broad-based benchmark that tracks the performance of the taxable, investment grade U.S. bond market, including Treasuries, government-related and corporate bonds, mortgage pass-through securities, commercial mortgage-backed securities and asset-backed securities that are publicly available for sale in the United States. The securities in the index must be fixed rate, non-convertible, U.S. dollar-denominated with at least $250 million or more of outstanding face value and have one or more years remaining to maturity. As of June 30, 2011, Barclays Capital U.S. Bond Index held 7,979 bonds.
Charles Schwab continues to be a leader in the retail ETF market, with $124 billion in assets custodied on its platform as of June 30, 2011. Schwab ETFs had $4.4 billion in assets as of June 30, 2011. In the second quarter of 2011, U.S. fixed income ETF assets at Schwab increased by 11.5 percent.
|Schwab ETF||ETF symbol & expense ratio comparison1|
|NEW! Schwab U.S. Aggregate Bond ETF™|| SCHZ |
| BND |
| AGG |
| LAG |
|Schwab U.S. TIPS ETF™|| SCHP |
|N/A|| TIP |
| IPE |
|Schwab Short-Term U.S. Treasury ETF™|| SCHO |
|N/A|| SHY |
|Schwab Intermediate-Term U.S. Treasury ETF™|| SCHR |
|N/A|| IEI |
| ITE |
|Domestic Equity ETFs||Schwab||Vanguard||iShares||SPDRs|
|Schwab U.S. Broad Market ETF™|| SCHB |
| VTI |
| IWV |
| TMW |
|Schwab U.S. Large-Cap ETF™|| SCHX |
| VOO |
| IVV |
| SPY |
|Schwab U.S. Large-Cap Growth ETF™|| SCHG |
| VUG |
| IVW |
| SPYG |
|Schwab U.S. Large-Cap Value ETF™|| SCHV |
| VTV |
| IVE |
| SPYV |
|Schwab U.S. Mid-Cap ETF™|| SCHM |
| VO |
| IJH |
| MDY |
|Schwab U.S. Small-Cap ETF™|| SCHA |
| VB |
| IJR |
| SLY |
|Schwab U.S. REIT ETF™|| SCHH |
| VNQ |
| IYR |
| RWR |
|International Equity ETFs||Schwab||Vanguard||iShares||SPDRs|
|Schwab International Equity ETF™|| SCHF |
| VEA |
| EFA |
| CWI |
|Schwab International Small-Cap Equity ETF™|| SCHC |
| VSS |
| SCZ |
| GWX |
|Schwab Emerging Markets Equity ETF™|| SCHE |
| VWO |
| EEM |
| GMM |
1 Expense ratio comparison data for non-Schwab ETFs was obtained from the funds' most recent prospectuses, data pulled as of 7/7/11. Expense ratios are subject to change. Comparisons are made between each Schwab ETF and ETFs in the same Morningstar asset class from the three largest ETF providers. ETFs in the same asset class may track different indexes, have differences in holdings, and show different performance.
In addition to the impressive value of its proprietary ETFs, Schwab offers a host of resources to help clients choose ETFs that fit their investment needs, including the Schwab ETF Select List; tutorials, research and tools available via Schwab’s online ETF center; and live events at local Schwab branches.
Commission-free online trading** of Schwab ETFs is available to individual investors at Schwab, to the more than 6,000 independent investment advisors who use Schwab’s custodial services and through Schwab retirement accounts that permit trading of ETFs.
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 $218 billion in assets under management as of June 30, 2011. 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 ETFs™ and Schwab Funds®, CSIM is investment adviser for the institutional-style, sub-advised Laudus Fund family. CSIM currently manages more than 70 mutual funds, 14 exchange-traded funds, and four separate account model portfolios.
About Charles Schwab
The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with more than 300 offices and 8.1 million client brokerage accounts, 1.4 million corporate retirement plan participants, 736,000 banking accounts, and $1.7 trillion in client assets as of May 31, 2011. 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; 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 mortgage services and products. More information is available at www.schwab.com and www.aboutschwab.com. (0711-4375)
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**Restrictions Apply: Online trades of Schwab ETFs™ are commission-free at Schwab, while trades of third-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.
Investors should consider carefully information contained in the prospectus, including investment objectives, risks, charges and expenses. You can request a prospectus by calling Schwab at 1-800-435-4000 or by visiting www.schwabetfs.com. Please read the prospectus 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.
Diversification does not eliminate the risk of market loss. The information provided is not intended to be investment or tax advice.
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.
Commission-free trades are available through the broker-dealer subsidiary of The Charles Schwab Corporation, Charles Schwab & Co., Inc. (Member SIPC).
Barclays Capital and the names identifying the Barclays’ indices are trade marks or names of Barclays Bank PLC and its affiliates (“Barclays”) and have been licensed for use in connection with the listing and trading of the fund. The fund is not sponsored by, endorsed, sold or promoted by Barclays and Barclays makes no representation regarding the advisability of investing in such fund.
Schwab ETFs are distributed by SEI Investments Distribution Co. (SIDCO). SIDCO is not affiliated with The Charles Schwab Corporation or any of its affiliates.
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