Schwab Announces Zero Capital Gains Distributions in 2012 Across the Entire Schwab ETF™ Fund Family

  Schwab Announces Zero Capital Gains Distributions in 2012 Across the Entire
  Schwab ETF™ Fund Family

Business Wire

SAN FRANCISCO -- December 28, 2012

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-CapETF™ (SCHX) – have now passed the $1 billion
asset mark.

Schwab is an industry leaderin servingETFinvestors, 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, 1.5million corporate retirement plan participants, 838,000banking
accounts, and $1.86trillion in client assets.The companywas 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,, 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 and (1212-8459)

Follow us on Twitter: @charlesschwab

Read our blog: Schwab Talk

^1 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


Investors should consider carefully information contained in the prospectus,
including investment objectives, risks, charges and expenses. You can request
a prospectus by calling Schwab at 1-800-435-4000 or by visiting 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.

Schwab ETFs are distributed by SEI Investments Distribution Co. (SIDCO). SIDCO
is not affiliated with The Charles Schwab Corporation or any of its

            Not FDIC Insured • No Bank Guarantee • May Lose Value

© 2012 Charles Schwab & Co., Inc. Member SIPC


Charles Schwab
Erin Montgomery, 212-403-9271
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