Schwab ETF OneSource™ Doubles Lineup to 500+ Commission-Free ETFs

Pioneering program marks sixth anniversary by adding nearly 250 zero-commission ETFs, expanding coverage to 79 Morningstar categories

Tuesday, February 12, 2019 5:00 am PST

Dateline:

SAN FRANCISCO

Public Company Information:

NYSE:
SCHW
"We’re very proud of the role that Schwab ETF OneSource has played in making ETF investing more affordable and accessible for all investors"

SAN FRANCISCO--(BUSINESS WIRE)--Schwab announced today that Schwab ETF OneSource™, one of the largest commission-free exchange-traded fund (ETF) programs in the industry1, will double its lineup and add iShares ETFs to its already robust menu. With these additions, Schwab clients will be able to buy and sell 503 ETFs covering 79 Morningstar Categories with $0 online commissions, no enrollment requirements and no early redemption fees or activity assessment fees – key differentiators for investors comparing Schwab ETF OneSource to other commission-free ETF offerings.

Starting on March 1, 2019, iShares ETFs will join the program with 90 funds, and Invesco, State Street Global Advisors SPDR® ETFs and WisdomTree will add significantly to the number of ETFs they already make available commission-free to Schwab clients. Aberdeen Standard Investments, ALPS Advisors, Direxion, Global X ETFs, John Hancock Investments, J.P. Morgan Asset Management and PIMCO – all current participants in the Schwab ETF OneSource program – are also adding funds to the lineup.

“We’re very proud of the role that Schwab ETF OneSource has played in making ETF investing more affordable and accessible for all investors,” said Kari Droller, vice president of third-party platforms. “Today, nearly three in four investors tell us that ETFs are their investment vehicle of choice, and portfolio allocations continue to rise steadily2. Against that backdrop, we’re pleased to provide investors with significantly more choice and to welcome iShares ETFs to our family of providers.”

One of the first commission-free ETF programs in the industry, Schwab ETF OneSource launched in February 2013 with six providers and 105 ETFs. In six years, the program has grown its lineup of commission-free ETFs nearly five-fold and expanded the number of providers participating in the program to 16, including: Aberdeen Standard Investments, ALPS Advisors, DWS Group, Direxion, Global X ETFs, IndexIQ, Invesco, iShares ETFs, John Hancock Investments, J.P. Morgan Asset Management, OppenheimerFunds, PIMCO, State Street Global Advisors SPDR® ETFs, USCF, WisdomTree and Charles Schwab Investment Management.

With this expansion, Schwab ETF OneSource will add ETFs in the following Morningstar Categories: Communications, Foreign Small/Mid Value, Latin America Stock, Long-Term Bond, Multisector Bond, Muni California Long, Muni National Intermediate, Muni New York Intermediate, World Small/Mid Stock.

A list of the 246 funds that will be added to Schwab ETF OneSource on March 1 is available here.

Schwab ETF OneSource Assets Grew 10% in 2018

Assets in Schwab ETF OneSource reached $115 billion as of December 31, 2018, growing by 10 percent over 2017. Flows into ETFs in the program for the year totaled $22.8 billion, representing 49 percent of the total ETF flows at Schwab.

About Schwab ETF OneSource

Schwab ETF OneSource offers investors and advisors access to 500+ commission-free ETFs. Commission-free online trading is available to individual investors at Schwab, to approximately 7,000 independent investment advisors who use Schwab’s custodial services and through Schwab retirement accounts that permit trading of ETFs.

In addition to its commission-free program, Schwab offers a range of resources to help clients choose ETFs that fit their investment needs, including the Schwab ETF Select List™, tutorials, education, research and tools available via Schwab’s online ETF center, and live events at local Schwab branches.

About 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.

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 request a prospectus by calling Schwab at 1‐800‐435‐4000. Please read it 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. Shares of ETFs are bought and sold at market price, which may be higher or lower than the net asset value (NAV).

Schwab’s use of the name or logo of any ETF sponsor or individual ETF in Schwab ETF OneSource promotional and informational materials prepared by Schwab is used under license. Schwab’s inclusion of a particular ETF in ETF OneSource should not be considered endorsement of any participating ETF or ETF sponsor or a recommendation of any security. Except with respect to the Schwab ETFs, Schwab is not affiliated with any participating ETF or ETF sponsor.

Charles Schwab & Co., Inc. receives remuneration from certain third‐party ETF companies participating in Schwab ETF OneSource™ for record keeping, shareholder services and other administrative services, including program development and maintenance. Participating firms also may make additional payments for other ETF-related opportunities, such as education and events and reporting.

ALPS Distributors, Inc. is the marketing agent for Aberdeen Standard Silver ETF Trust, Aberdeen Standard Gold ETF Trust, Aberdeen Standard Platinum ETF Trust, Aberdeen Standard Palladium ETF Trust and the Aberdeen Standard Precious Metals Basket ETF Trust. ALPS Distributors, Inc. is the distributor for the Aberdeen Standard Investments ETFs.

Xtrackers ETFs are managed by DBX Advisors LLC (the Advisor), and distributed by ALPS Distributors, Inc. (ALPS). The Advisor is a wholly owned subsidiary of DWS Group GmbH & Co. KGaA, and is not affiliated with ALPS.

Global X is a registered trademark of Global X Management Company LLC.

IndexIQ® is an indirect wholly owned subsidiary of New York Life Investment Management Holdings LLC. ALPS Distributors, Inc. (ALPS) is the principal underwriter of the ETFs. NYLIFE Distributors LLC is a distributor of the ETFs. NYLIFE Distributors LLC is located at 30 Hudson Street, Jersey City, NJ 07302. ALPS Distributors, Inc. is not affiliated with NYLIFE Distributors LLC. NYLIFE Distributors LLC is a Member FINRA/SIPC.

Invesco Distributors, Inc. is the US distributor for Invesco’s retail products and private placements, and is an indirect, wholly owned subsidiary of Invesco Ltd.

iShares® and BlackRock® are registered trademarks of BlackRock, Inc. and its affiliates (“BlackRock”) and are used under license.

John Hancock ETFs are distributed by Foreside Fund Services, LLC, and are subadvised by Dimensional Fund Advisors LP. Foreside is not affiliated with John Hancock Advisers, LLC or Dimensional Fund Advisors LP.

J.P. Morgan Exchange-Traded Funds are distributed by JPMorgan Distribution Services, Inc., which is affiliated with JPMorgan Chase & Co JPMorgan Distribution Services, Inc. is a member of FINRA.

Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc. Alternative weighting approaches (i.e., factor weighting as a measure), while designed to enhance potential returns, may not produce the desired results.

PIMCO® is a trademark of Allianz Asset Management of America L.P. in the United States and throughout the world. All rights reserved.

Standard & Poor’s®, S&P® and SPDR® are registered trademarks of Standard & Poor’s Financial Services LLC (S&P); Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC (Dow Jones); and these trademarks have been licensed for use by S&P Dow Jones Indices LLC (SPDJI) and sublicensed for certain purposes by State Street Corporation. State Street Corporation’s financial products are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates and third party licensors and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability in relation thereto, including for any errors, omissions, or interruptions of any index.

USCF®, the United States Commodity Funds®, INVEST IN WHAT'S REAL® are registered trademarks of United States Commodity Funds LLC. All rights reserved.

WisdomTree Investments, Inc., through its subsidiaries in the U.S., Europe and Canada (collectively, “WisdomTree”), is an exchange-traded fund (“ETF”) and exchange-traded product (“ETP”) sponsor and asset manager headquartered in New York. WisdomTree Funds are distributed by Foreside Fund Services, LLC in the U.S. only.

Charles Schwab Investment Management, Inc., the investment advisor for Schwab ETFs and Charles Schwab & Co., Inc. (Schwab) are affiliates and are subsidiaries of the Charles Schwab Corporation. Schwab ETFs are distributed by SEI Investments Distribution Co. (SIDCO). SIDCO is not affiliated with The Charles Schwab Corporation or any of its subsidiaries. Learn more at schwab.com/Schwab ETFs.

Through its operating subsidiaries, The Charles Schwab Corporation (NYSE:SCHW) 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. (Schwab), and its 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; compliance and trade monitoring solutions; 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 lending services and products. More information is available at www.schwab.com and www.aboutschwab.com.

Brokerage Products: Not FDIC Insured • No Bank Guarantee • May Lose Value

© 2019 The Charles Schwab Corporation & Co., Inc., All rights reserved. Member SIPC

(0219-96JD)

1 Conditions Apply: Trades in ETFs available through Schwab ETF OneSource™ (including Schwab ETFs™) are available without commissions when placed online in a Schwab account. Service charges apply for trade orders placed through a broker ($25) or by automated phone ($5). An exchange processing fee applies to sell transactions. Certain types of Schwab ETF OneSource transactions are not eligible for the commission waiver, such as short sells and buys to cover. Schwab reserves the right to change the ETFs we make available without commissions. All ETFs are subject to management fees and expenses. Please see Charles Schwab Pricing Guide for additional information.

2 The 2018 ETF Investor Study by Charles Schwab

Contact:

Erin Montgomery
Schwab
Phone: 917-602-2180
erin.montgomery@schwab.com

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