SAN FRANCISCO -- (Business Wire)
Charles Schwab announced today that there will be no capital gains
distributions in 2012 by any of the funds in the Schwab ETF™ family.
“We are extremely pleased to be able to deliver this tax efficiency to
the growing number of clients who invest in ETFs, and consider it
another of the important benefits that Schwab ETFs offer investors,”
said John Sturiale, vice president of product management for Charles
Schwab & Co., Inc.
In September 2012, Schwab announced dramatic cuts to the expense ratios
of all 15 Schwab ETFs, making them the lowest expense ratios in their
respective Lipper categories1. Schwab’s first eight ETFs are
currently marking their three-year milestones, and two Schwab ETFs –
Schwab U.S. Broad Market ETF™ (SCHB) and Schwab U.S. Large-Cap ETF™
(SCHX) – have now passed the $1 billion asset mark.
Schwab is an industry leader in serving ETF investors, with $150 billion
in client ETF assets as of 11/30/12. The company launched its own Schwab
ETFs in November 2009, becoming the first to introduce commission-free
online trading2 of ETFs in client accounts. Since then,
Schwab ETFs have grown to over $8.12 billion in assets under management,
as of 11/30/12.
About Charles Schwab Investment Management
Founded in 1989, CSIM, a subsidiary of The Charles Schwab Corporation,
is one of the nation's largest asset management companies with $210.7
billion in assets under management as of 11/30/12. It is among the
country's largest money market fund managers and is the third-largest
provider of retail index funds3. In addition to managing
Schwab’s proprietary funds, CSIM provides oversight for the
institutional-style, sub-advised Laudus Fund family. CSIM currently
manages 74 mutual funds, 24 of which are actively managed funds, in
addition to two separate account model portfolios, and 15 ETFs.
About Charles Schwab
The Charles Schwab Corporation (NYSE:SCHW) is a leading provider of
financial services, with more than 300 offices and 8.7 million active
brokerage accounts, 1.5 million corporate retirement plan participants,
838,000 banking accounts, and $1.86 trillion in client assets. The
company was ranked "Highest in Investor Satisfaction With Self-Directed
Services" in the 2012 US Self-Directed Investor Satisfaction StudySM
from J.D Power and Associates. 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 its Advisor Services division. Its
banking subsidiary, Charles Schwab Bank (member FDIC and an Equal
Housing Lender), provides trust and custody services, banking and
mortgage services and products. Investment products offered by Charles
Schwab & Co., Inc. are not insured by the FDIC, are not deposits or
obligations of Charles Schwab Bank, and are subject to investment risk,
including the possible loss of principal invested. More information is
available at www.schwab.com
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1 This claim is based on expense ratio data comparisons
between Schwab and non-Schwab ETFs in their respective Lipper
categories. Expense ratio data were obtained from the funds’
prospectuses, data pulled as of 11/2/12. 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 shown represent the funds with the
lowest expense ratio within their fund family in their respective Lipper
category. Expense ratios are subject to change.
2 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. See the Charles Schwab Pricing Guide for more details.
Any listed ETF might be traded with no commission through other
broker-dealer trading platforms. Although Schwab ETFs have not paid
capital gains distributions in the past, there can be no assurance that
this will continue in the future
3 Strategic Insight, November 2012
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.
Schwab ETFs are distributed by SEI Investments Distribution Co. (SIDCO).
SIDCO is not affiliated with The Charles Schwab Corporation or any of
Not FDIC Insured • No Bank Guarantee • May Lose Value
© 2012 Charles Schwab & Co., Inc. Member SIPC
Erin Montgomery, 212-403-9271
Source: The Charles Schwab Corporation
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