Schwab Asset Management expands its actively
managed ETF line-up
Schwab Asset Management®, the asset management arm of The
Charles Schwab Corporation, today announced the launch of the
Schwab Core Bond ETF (NYSE Arca: SCCR). It’s the business’s second
actively managed fixed income ETF after the launch in August 2024
of the Schwab Ultra-Short Income ETF (NYSE Arca: SCUS). The first
day of trading of SCCR is expected to be on or about February
5.
With an expense ratio of 0.16%, the Schwab Core Bond ETF is
priced below the industry average of 0.40%.1 The goal of the fund
is to provide total return while generating income through
investing in U.S. dollar-denominated debt securities such as
corporate bonds, taxable municipal bonds, mortgage pass-through
securities, commercial mortgage-backed securities, asset-backed
securities, U.S. Treasuries, and other government-related
bonds.
Designed based on the investment process used for the Wasmer
Schroeder Core Bond Separately Managed Account (SMA) strategy that
was launched in January 20082, the new fund will be managed by
portfolio managers who have supported the Wasmer Schroeder™
strategies: John Majoros, senior portfolio manager and co-head of
SMA strategies, and Brian Luedtke senior portfolio manager. They
will target attractive risk-adjusted returns using qualitative and
quantitative methods to manage a diversified portfolio of bonds
across multiple sectors and backed by Schwab Asset Management’s
experienced credit research team.
“The Schwab Core Bond ETF provides investors with access to our
portfolio management team’s expertise, along with the inherent
features of an ETF,” said David Lafferty, Director, Product
Management & Innovation, Schwab Asset Management. “In today’s
rate environment, investors have the potential to capture a healthy
level of income and navigate total market volatility by
diversifying their core bond exposure with high-quality bonds.”
About Schwab Asset Management
One of the industry’s largest and most experienced asset
managers, Schwab Asset Management offers a focused lineup of
competitively priced ETFs, mutual funds and separately managed
account strategies designed to serve the central needs of most
investors. By operating through clients’ eyes, and putting them at
the center of our decisions, we aim to deliver exceptional
experiences to investors and the financial professionals who serve
them. As of September 30, 2024, Schwab Asset Management managed
approximately $1.3 trillion on a discretionary basis and $40.7
billion on a non-discretionary basis.
More information is available at
www.schwabassetmanagement.com.
About Charles Schwab
At Charles Schwab we believe in the power of investing to help
individuals create a better tomorrow. We have a history of
challenging the status quo in our industry, innovating in ways that
benefit investors and the advisors and employers who serve them,
and championing our clients’ goals with passion and integrity.
More information is available at aboutschwab.com. Follow us on
X, Facebook, YouTube, and LinkedIn.
Disclosures:
Investors should consider carefully information contained in
the prospectus, or if available, the summary prospectus, including
investment objectives, risks, charges and expenses. You can obtain
a prospectus, or if available, a summary prospectus by visiting
https://www.schwabassetmanagement.com/prospectus. Please read it
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. Shares of ETF are bought and sold at market price, which
may be higher or lower than the net asset value (NAV).
Diversification and asset allocation strategies do not ensure a
profit and do not protect against losses in declining markets.
Schwab Core Bond ETF is an actively managed exchange traded fund
and therefore does not seek to replicate the performance of any
specific index. The fund may have a higher degree of portfolio
turnover than funds that seek to replicate the performance of an
index.
Fixed income securities are subject to increased loss of
principal during periods of rising interest rates. Fixed-income
investments are subject to various other risks including changes in
credit quality, market valuations, liquidity, prepayments, early
redemption, corporate events, tax ramifications and other
factors.
An actively managed fund is subject to the risk that its
investment adviser and/or subadviser will select investments or
allocate assets in a manner that could cause the fund to
underperform or otherwise not meet its investment objective.
The fund may invest in U.S.-registered, dollar-denominated bonds
of non-U.S. corporations. The fund's investments in bonds of
non-U.S. issuers may involve certain risks that are greater than
those associated with investments in securities of U.S. issuers.
These include risks of adverse changes in foreign economic,
political, regulatory and other conditions; the imposition of
economic sanctions or other government restrictions; differing
accounting, auditing, financial reporting and legal standards and
practices; differing securities market structures; and higher
transaction costs. These risks may be heightened in connection with
bonds issued by non-U.S. corporations and entities in emerging
markets.
Portfolio Management for the Wasmer Schroeder Strategies is
provided by Charles Schwab Investment Management, Inc., dba Schwab
Asset Management®, a registered investment adviser and an
affiliate of Charles Schwab & Co., Inc. (“Schwab”). Both Schwab
Asset Management and Schwab are separate entities and subsidiaries
of The Charles Schwab Corporation. Please refer to the Charles
Schwab Investment Management, Inc. Disclosure Brochure
for additional information.
Schwab Asset Management® is the dba name for Charles Schwab
Investment Management, Inc., the investment adviser for Schwab
Funds, Schwab ETFs, and separately managed account strategies.
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.
0125-DYZB
_____________________
1 Morningstar categories are not assigned until after inception
date. Comparison based on Schwab Asset Management’s analysis of
categories with ETFs that have similar characteristics to SCCR, as
of 11/30/2024. 2 Schwab Asset Management became the investment
adviser for Wasmer Schroeder Strategies in 2020.
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version on businesswire.com: https://www.businesswire.com/news/home/20250113985271/en/
Christine Underhill Charles Schwab 415-961-3790
Charles Schwab (NYSE:SCHW)
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