Exchange-Traded Funds & Mutual Funds
Exchange-traded funds (ETFs) can be a powerful solution by combining the trading flexibility of stocks with the diversification of a managed investment. Schwab provides access to U.S. exchange-listed ETFs, while Schwab trading professionals offer you deep insights, industry expertise, and ongoing support.
Streamline portfolios at a potentially 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 generally report their holdings daily.
- Greater tax efficiency potential—Their unique creation and redemption process may reduce 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 relative to actively managed investments.
Research, monitor, and compare ETFs
Through Schwab, you can access more than 3,000 commission-free1 online ETFs. Developed by experts at The Schwab Center for Financial Research and updated semi-annually, 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 affiliated ETF and one third-party ETF from 70 asset categories, when available.
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®
Schwab Asset Management has grown to become one of the nation's largest asset managers and one of the largest providers of ETFs.2 Schwab ETFs can 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%. As one of the largest and most established ETF families, Schwab Asset Management is able to offer the broad market access and diverse options that clients seek with some of the lowest expenses in the industry.
For advisors who want to complement traditional market-cap index and actively managed strategies, Schwab offers Fundamental Index® ETFs. This methodology provides investors access to a straightforward, innovative indexing approach that is non-price-weighted, seeking to deliver excess return versus a traditional market cap–weighted index.
Mutual funds at Schwab
Mutual funds continue to be the core of many Schwab 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.
- Take advantage of our Institutional No Transaction Fee Fund offer featuring over 1,000 no transaction fee funds from several asset managers, including T. Rowe Price.
- You can choose from close to 17,000 mutual funds from more than 600 fund families, including over 4,000 with no loads and no transaction fees through Schwab's Mutual Fund OneSource® service.
Access Schwab Funds®
As an industry provider of index investments for more than 30 years, Schwab Asset Management offers a range of passive and active mutual funds, in addition to access to sub-advised mutual funds. We believe all investors, no matter how much they have to invest, have access to the same low-cost Schwab index mutual funds—with no minimums.
For advisors who want to complement traditional market-cap index and actively managed funds, Schwab Asset Management offers Fundamental Index strategies. Schwab Asset Management was the first to launch Fundamental Index mutual funds and is 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 methodology.
Schwab's actively managed mutual fund offerings includes a wide array of equity, bond, real estate, money market, and asset-allocation products, including a suite of sub-advised funds to complement a portfolio's diversification strategy. These funds are chosen by a knowledgeable and experienced management team who consider the specific objectives of the investments they manage.
For institutional audience only. 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 calling 877-824-5615. Please read the prospectus carefully before investing. Past performance does not guarantee future performance.
Source: Daily Business Objects Report from ITEM
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1. ETFs at Charles Schwab & Co., Inc. (“Schwab”) which are U.S. exchange-listed can be traded without a commission on buy and sell transactions made online in a Schwab account. Unlisted ETFs are subject to a commission. Trade orders placed through a broker will receive the negotiated broker-assisted rate. An exchange process fee applies to sell transactions. Schwab's affiliate Charles Schwab Investment Management, Inc., dba Schwab Asset Management, serves as investment advisor to the Schwab ETFs™, which compensate Schwab Asset Management out of the applicable operating expense ratios. All ETFs are subject to management fees and expenses. The amount of the fees is disclosed in the prospectus of each ETF. See the Schwab Pricing Guide For Clients of Independent Investment Advisors for pricing details.
Charles Schwab & Co., Inc. (member SIPC) receives remuneration from fund companies in the Mutual Fund OneSource service for recordkeeping and shareholder services, and other administrative services. Schwab also may receive remuneration from transaction fee fund companies for certain administrative services.
Trades in no load funds available through Mutual Fund OneSource service, as well as certain other funds, are available without transaction fees. For each of these trade orders placed through a broker, a $25 service charge applies. Schwab's short‐term redemption fee of $49.95 will be charged on redemption of funds purchased through Schwab's Mutual Fund OneSource service and held for 90 days or less. Schwab reserves the right to exempt certain funds from this fee, including Schwab Funds®, which may charge a separate redemption fee, and funds that accommodate short‐term trading. Funds are also subject to management fees and expenses.
2. Sources: Strategic Insight. Rankings based on assets under management (AUM) as of March 31, 2022. Asset-weighted average expense ratio is based on assets as of March 31, 2022 and operating expense ratios effective March 31, 2022.
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.
Schwab Asset Management™ is the dba name for Charles Schwab Investment Management, Inc. (CSIM), the investment adviser for Schwab Funds and Schwab ETFs. Schwab Funds are distributed by Charles Schwab & Co., Inc. (Schwab), Member SIPC. Schwab ETFs are distributed by SEI Investments Distribution Co. (SIDCO). Schwab Asset Management and Schwab are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation, and are not affiliated with SIDCO.
Fundamental Index is a registered trademark of Research Affiliates, LLC. There can be no assurance that the Fundamental Index methodologies will achieve their desired outcomes. Each investing strategy brings with it its own set of unique risks and benefits.