Charles Schwab Investment Management Announces Zero Capital Gains Distributions for Schwab ETFs™ for Seventh Consecutive Year

Monday, December 19, 2016 6:00 am PST



Public Company Information:

"Tax efficiency is one of the primary reasons that many investors are attracted to ETFs, so we’re pleased that there will be no capital gains distributions by the Schwab ETFs for the seventh year in a row"

SAN FRANCISCO--(BUSINESS WIRE)--Charles Schwab Investment Management, Inc. (CSIM) announced today that there will be no capital gains distributions in 2016 by any of the 21 exchange-traded funds (ETFs) in the Schwab ETFs™ family for the seventh consecutive year.

“Tax efficiency is one of the primary reasons that many investors are attracted to ETFs, so we’re pleased that there will be no capital gains distributions by the Schwab ETFs for the seventh year in a row,” said Jonathan de St. Paer, Senior Vice President, Strategy and Product Development, CSIM. “Every penny counts when evaluating a fund’s total cost, and an efficient tax structure is just one of the many ways our foundational, low-cost ETFs can help investors achieve their investment goals.”

Schwab ETFs include both market-cap index ETFs and Fundamental Index® ETFs. The Schwab Market-Cap Index ETFs have among the lowest operating expense ratios in the industry, and the Schwab Fundamental Index* ETFs continue to gain meaningful traction from institutional and individual investors alike. CSIM views these strategies as complementary, and advocates allocation to both to help achieve broader diversification in an investor’s portfolio.

For more than 25 years, CSIM has provided investors with a diverse selection of foundational products that aim to deliver consistent performance at a competitive cost. As the fifth largest ETF provider with more than $56 billion in ETF assets under management1, CSIM continues to serve as an industry leader for ETF investors.

About Charles Schwab Investment Management, Inc.

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 $296B in assets under management as of 11/30/16. It is among the country’s largest money market fund managers based on assets under management according to iMoneyNet as of 11/30/16. It is also the third-largest provider of index mutual funds and the fifth largest provider of ETFs.

More information is available at

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 Follow us on Twitter, Facebook, YouTube and LinkedIn.

1 Source: Strategic Insight, as of 11/30/16


Investors should consider carefully information contained in the prospectus, including investment objectives, risks, charges and expenses. You can obtain a prospectus by visiting or calling 1-877-824-5615. 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 of ETFs are bought and sold at market price, which may be higher or lower than the net asset value (NAV).

* Schwab is a registered trademark of Charles Schwab & Co., Inc. 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., the investment advisor for Schwab ETFs, and Charles Schwab & Co., Inc. (Schwab, Member SIPC) are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation.



Charles Schwab
Kaitlyn Downing, 212-403-9240

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