Charles Schwab Investment Management Announces Upcoming Changes To SCHWAB U.S. REIT ETF (SCHH)

Friday, May 1, 2020 2:00 pm PDT

Dateline:

SAN FRANCISCO

Public Company Information:

NYSE:
SCHW

SAN FRANCISCO--(BUSINESS WIRE)--Charles Schwab Investment Management, Inc. (CSIM), an asset management arm of The Charles Schwab Corporation, recently announced forthcoming changes to the Schwab U.S. REIT ETF (SCHH).

Beginning on or about June 22, 2020, the index that SCHH seeks to track will migrate from the Dow Jones U.S. Select REIT Index to the Dow Jones Equity All REIT Capped Index.

As a result, the investment strategy for the ETF will be modified to reflect its intent to track the Dow Jones Equity All REIT Capped Index. Additionally, the investment objective of the ETF will be modified to reflect that SCHH will seek to track an index comprised of equity REIT securities.

These changes are expected to have little to no impact on the ETF or for investors of the ETF. The ETF’s name, ticker, and operating expense ratio will not change. It will continue to provide exposure to REITs, but will do so by tracking a more diverse index that includes equity REIT segments not included in the previous index. In addition, SCHH will continue to exclude mortgage REITs. Additional details can be found in the prospectus supplement dated April 3, 2020.

About Charles Schwab Investment Management, Inc.

As of December 31, 2019, Charles Schwab Investment Management managed approximately $468.9 billion on a discretionary basis and approximately $18.1 billion on a non-discretionary basis.

More information is available at www.schwabfunds.com.

About Charles 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.

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 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).

Risks of investing in REITs are similar to those associated with direct ownership of real estate, such as changes in real estate values and property taxes, interest rates, cash flow of underlying real estate assets, supply and demand, and the management skill and credit worthiness of the issuer.

Charles Schwab Investment Management, Inc. (CSIM), is the investment advisor for Schwab ETFs. Schwab ETFs are distributed by SEI Investments Distribution Co. (SIDCO). CSIM is a separate, but affiliated company and subsidiary of The Charles Schwab Corporation, and is not affiliated with SIDCO.

©2020 Charles Schwab Investment Management, Inc. All rights reserved.

(0520-03B2)

Contact:

Erin Montgomery
Charles Schwab
Phone: 212-403-9271
erin.montgomery@schwab.com

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