Exchange traded funds combine the flexibility of stocks with diversification to create a powerful investment solution which can help investment advisors solve for a variety of client needs.
To help advisors easily construct client portfolios, Schwab offers access to any exchange traded fund (ETF) available. In addition to helping clients efficiently gain exposure to market sectors, ETFs offer additional benefits, including:
Potential for Tax Efficiency
Intraday Liquidity
Holdings Transparency
Market exposure and diversification
Low operating expense ratios (OERs)
Additional benefits for advisors who choose Schwab
Schwab has a suite of eight ETFs which track domestic and international equity indexes and three new fixed income ETFs that track Treasury security indexes. Advisors who select Schwab as a custodian can trade Schwab ETFs™ commission-free online. In addition to commission-free trades online for Schwab advisors, Schwab ETFs offer OERs that are, generally among the lowest in the industry.
This pricing structure underscores Schwab’s commitment to providing the tools and services to help you deliver value to your clients.
Investors should consider carefully information contained in the prospectus, including investment objectives, risks, charges, and expenses. You can obtain a prospectus 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.
An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
Fixed income securities are subject to increased loss of principal during periods of rising interest rates.
TIPS generally have lower yields than conventional fixed rate bonds and will likely decline in price during periods of deflation, which could result in losses.
All ETFs are subject to management fees and expenses.
Restrictions Apply: Online trades of Schwab ETFs™ are commission-free at Schwab, while trades of 3rd-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 Institutional Pricing Guide for more details.
Schwab ETFs are distributed by SEI Investments Distribution Co. (SIDCO). SIDCO is not affiliated with The Charles Schwab Corporation or any of its affiliates.
