Schwab Reports Zero Capital Gains Distributions for Schwab ETFs™ for Sixth Consecutive Year

Wednesday, December 16, 2015 6:00 am PST



Public Company Information:

"At CSIM we seek to deliver tax efficiency and help investors achieve their investment goals with simple, low-cost products that deliver value."

SAN FRANCISCO--(BUSINESS WIRE)--Charles Schwab Investment Management, Inc. (CSIM) announced today that there will be no capital gains distributions in 2015 by any of the 21 exchange-traded funds (ETFs) in the Schwab ETFs™ family for the sixth consecutive year.

“Many investors are attracted to the tax efficiency that ETFs provide, so we’re proud that Schwab ETFs have been able to meet this demand with no distributed capital gains since the first Schwab ETFs launched in 2009,” said Jonathan de St. Paer, Senior Vice President, Product Management, Charles Schwab Investment Management. “At CSIM we seek to deliver tax efficiency and help investors achieve their investment goals with simple, low-cost products that deliver value.”

For over 25 years, CSIM’s mission has been to make investing easier and less expensive for investors by building funds that serve as the foundation of an investor’s portfolio. As the seventh largest ETF provider with more than $39 billion in assets under management (AUM)1, Schwab continues to serve as an industry leader for ETF investors.

Schwab ETFs include both market-cap weighted ETFs and Fundamental Index® ETFs. CSIM’s philosophy is that these two methodologies are complementary, and can work well together in an investor’s portfolio to help achieve broad diversification. The Schwab market-cap weighted ETFs offer the lowest operating expense ratios in their respective Lipper categories2, and Schwab’s six Fundamental Index ETFs continue to gain meaningful traction from institutional and individual investors alike.

About Charles Schwab Investment Management, Inc.

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 more than $266.5B in assets under management as of 9/30/15. It is among the country’s largest money market fund managers and is the third-largest provider of retail index funds. CSIM currently manages 74 mutual funds, in addition to two separate account model portfolios, and 21 ETF offerings.

More information is available at

About Schwab

At Charles 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.

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1 Data source: League Table, as of December 10, 2015;

2 This claim is based on expense ratio data comparisons between Schwab Market-Cap ETFs and non-Schwab Market-Cap ETFs in their respective Lipper categories. A Schwab Market-Cap ETF is determined to be the lowest in its Lipper Category if its expense ratio is equal to or lower than the lowest expense ratio of any non-Schwab Market-Cap ETF in that category. Securities in Market-Cap ETFs are selected and weighted based on the size of their market capitalization. Expense ratio data for both Schwab and non-Schwab Market-Cap ETFs was obtained from Strategic Insight Simfund as of 11/30/15. 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. The non-Schwab ETFs utilized represent the funds with the lowest expense ratio within their fund family in their respective Lipper category. Expense ratios are subject to change.


Investors should carefully consider information contained in the prospectus, including investment objectives, risks, charges and expenses. You can request a prospectus by visiting or calling Schwab at 800-435-4000. Please read the prospectus carefully before investing.

All regulated investment companies are obliged to distribute portfolio gains to shareholders at year’s end. There is no guarantee that capital gains distributions will not be made in the future. Trading shares of the Funds will also generate tax consequences and transaction expenses. This material is not intended to be tax advice. The tax consequences vary by individual taxpayer. Please consult your tax professional or financial adviser for more information with regard to your specific situation.

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. Shares are bought and sold at market price, which may be higher or lower than the net asset value (NAV).

Fundamental Index is a registered trademark of Research Affiliates LLC.

Schwab ETFs are distributed by SEI Investments Distribution Co. (SIDCO). SIDCO is not affiliated with The Charles Schwab Corporation. Learn more at

Charles Schwab Investment Management, Inc. is the investment advisor for Schwab ETFs and an affiliate of The Charles Schwab Corporation. Charles Schwab & Co., Inc. is an affiliate of The Charles Schwab Corporation.



Charles Schwab
Kaitlyn Downing, 212-403-9240

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