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Exchange-Traded Funds & Mutual Funds

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1 year 4 months
A063545
Submitted by Marc.Jones on Fri, 12/01/2017 - 10:56

Exchange-traded funds (ETFs) create a powerful solution by combining the trading flexibility of stocks with the diversification of a managed investment. Schwab's open-architecture platform provides access to every U.S.-listed ETF, while Schwab trading professionals offer you deep insights, industry expertise, and ongoing support.

Streamline portfolios at a lower cost—without sacrificing diversity or liquidity

ETFs offer built-in advantages that can help meet a variety of client needs, including:

  • Market exposure and diversification—ETFs provide an easy way to gain diversified exposure within a specific market without purchasing individual securities.
  • Transparency—To provide timely clarity into the specific investments held, most ETFs track publicly available indexes and managers are required to report their holdings daily.
  • Greater tax efficiency—Their unique creation and redemption process reduces the number of taxable events distributed to shareholders.
  • Low expense ratios—Because they generally track indexes and do not actively select securities, many ETFs have comparatively low expense ratios and management fees relative to actively managed investments.

Research, monitor, and compare ETFs

Through Schwab ETF OneSource™, you can access one of the largest commission-free ETF* investing platform in the industry, providing more than 200 commission-free ETFs from leading providers and spanning more than 65 Morningstar categories.

Developed by Charles Schwab Investment Advisory, Inc. and updated quarterly, the Schwab ETF Select List® makes it easier for you to find the right ETFs based on your clients’ investment needs and goals. The ETF Select List is made up of prescreened, lower-cost ETFs representing one from each of the 65 asset categories.

Schwab offers dynamic online tools to research, compare, and monitor ETFs. Our Advisor Services Trading Team can assist with trading strategies, complex trade execution, and block trade transactions.

Access low-cost Schwab ETFs™

Charles Schwab Investment Management has grown to become one of the nation’s largest asset managers – and one of the largest providers of ETFs**.  Schwab ETFs help you build diversified portfolios while simplifying and lowering the cost of investing for your clients.

More than 85% of the Schwab market cap index ETFs have expenses lower than 0.10%, with an asset-weighted average expense ratio of just 0.05%.1 As one of the largest and fastest growing ETF families, we are able to offer the broad market access and diverse options that clients seek – with some of the lowest expenses in the industry.1

For advisors who want to complement traditional market-cap-weighted index and actively managed strategies, Schwab offers Fundamental Index® strategies. Charles Schwab Investment Management is a pioneer in this unique approach to investing, which uses objective financial measures based on company size. Choose from multiple Schwab ETFs that use this innovative method.

Mutual funds at Schwab

Mutual funds continue to be the core of many client portfolios, offering cost-effective access to a wide range of professional affiliated and third-party investment managers and both passive and active investment strategies.

Access our industry-leading Mutual Fund MarketPlace®, featuring a full range of mutual fund managers and thousands of institutional share classes from nearly every asset class. You can choose from over 17,000 mutual funds from more than 700 fund families, including over 4,000 with no loads and no transaction fees through Schwab Mutual Fund OneSource®.

Research, compare, and monitor mutual funds

All our mutual fund solutions are backed by Schwab's dedicated Institutional Mutual Fund Trading desk, which provides timely, accurate information and assistance with mutual fund holdings.

Schwab’s Mutual Fund MarketPlace offers ready access to research, online learning opportunities, and expert support. Our Schwab Mutual Fund Select List Advisor Edition™ details a wide range of expertly researched and screened mutual funds available on the Schwab platform with no transaction fees.

For clients who own retail mutual fund shares, you can use inter class exchanges to determine if an institutional share class of the same fund is available and appropriate, as well as determine the steps to arrange for an inter-class exchange.

Access Schwab mutual funds

As an industry provider of index investments for more than 25 years, Charles Schwab Investment Management offers a range of passive and active mutual funds, in addition to access to sub-advised mutual funds. Unlike some firms that reserve their best pricing for institutions, all investors, no matter how much they have to invest, have access to the same lowest-cost Schwab market-cap index mutual funds—with no minimums.✝

For advisors who want to complement traditional market-cap-weighted index and actively managed strategies, Charles Schwab Investment Management offers Fundamental Index strategies. Charles Schwab Investment Management  were the first to launch Fundamental Index mutual funds and are a pioneer in this unique approach to investing, which uses objective financial measures based on company size. Choose from multiple Schwab mutual funds that use this innovative method.

Some of the specific fund families from Charles Schwab Investment Management include:

  • Schwab Funds®: A fund family offering a wide array of equity, bond, real estate, money market, and asset-allocation products appropriate for clients of various asset levels and investing styles
  • Laudus Funds®: A suite of sub-advised funds actively managed by the industry's most recognized investment managers

Review Schwab's Financial and Other Relationships with Mutual Funds >

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 clicking on Prospectus & Reports or call 877-824-5615. Please read the prospectus carefully before investing. Past performance does not guarantee future performance.

 

*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 (not including Schwab ETFs). Schwab reserves the right to change the ETFs we make available without commissions. All ETFs are subject to management fees and expenses. Please see pricing guide for additional information.

The Schwab Center for Financial Research™ (SCFR) is a division of Charles Schwab & Co., Inc. Articles attributed to SCFR are the opinions of employees of Charles Schwab & Co., Inc., Member SIPC, or Charles Schwab Investment Advisory, Inc. (CSIA), a registered investment advisor, and may not reflect the views of Charles Schwab Investment Management.

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. ETF shares are bought and sold at market price, which may be higher or lower than the net asset value.

Charles Schwab Investment Management, Inc. (CSIM) is the investment advisor for Schwab Funds, Laudus Funds and Schwab ETFs.  Schwab Funds are distributed by Charles Schwab & Co., Inc. (Schwab), Member SIPC.  The Laudus Group® of Funds includes the Laudus Mondrian Funds and Laudus U.S. Large Cap Growth Fund, which are part of the Laudus Trust and distributed by ALPS Distributors, Inc. (ALPS); and the Laudus MarketMasters Funds®, which are part of the Schwab Capital Trust and distributed by Schwab.  Schwab ETFs are distributed by SEI Investments Distribution Co. (SIDCO).  CSIM and Schwab, are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation, and are not affiliated with SIDCO or ALPS. ** All rankings based on assets under management (AUM) as of June 30, 2017. 3rd largest provider of index mutual funds source: Strategic Insight; 5th largest provider of ETFs source: Strategic Insight; 8th largest provider of money market funds source: iMoneyNet.

Minimums are subject to change. Lowest-cost claim is based on prospectus net expense ratio data comparisons between Schwab market-cap index mutual funds and non-Schwab market-cap index mutual funds in their respective Lipper categories. Securities in market-cap index mutual funds  are selected and weighted based on the size of their market capitalization. Schwab operating expense ratios (OERs) reflect expected OERs as of March 1, 2017. Competitor net OERs represent the lowest OER reported from annual reports, prospectuses, and Strategic Insight Simfund, as reflected on February 24, 2017. Funds in the same Lipper category may track different indexes, have differences in holdings, and show different performance. Competitors may offer more than one mutual fund in a Lipper category, including mutual funds that are not market-cap index mutual funds. Competitors may offer additional share classes that offer lower expense ratios than the share classes used for comparison, but typically with a higher investment minimum. Excludes competitor share classes with eligibility restrictions, specifically those that are generally not available to the general public. Expense ratios are subject to change.

1. Asset-weighted average expense ratio is based on assets as of January 31, 2017, and operating expense ratios effective March 1, 2017.

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

Fundamental Index is a registered trademark of Research Affiliates, LLC.

 

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