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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 categories
1. 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 trading
2 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 funds
3. 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 Study
SM 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
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Schwab Talk1 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