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Exchange-Traded Funds & Mutual Funds

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1 year 2 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.