Schwab Launches Schwab ETF OneSource™

  Schwab Launches Schwab ETF OneSource™

New platform offers the most commission-free ETFs available, spanning major
asset categories from leading providers

Business Wire

SAN FRANCISCO -- February 7, 2013

Charles Schwab announced today the launch of Schwab ETF OneSource™ — a new ETF
platform that gives investors and advisors access to the most commission-free
ETFs anywhere in the industry^1.

Beginning today, Schwab clients can buy and sell 105 ETFs with $0 online trade
commissions. The offering spans major asset classes, with funds from leading
providers, including State Street SPDR® ETFs, Guggenheim Investments,
PowerShares, ETF Securities, United States Commodity Funds, and Charles Schwab
Investment Management.

“Just as Schwab Mutual Fund OneSource™ changed the landscape for investors and
advisors by providing convenient, affordable access to leading mutual funds
when Chuck Schwab introduced it twenty years ago, we believe Schwab ETF
OneSource will deliver enormous benefit and change the way our clients buy and
sell ETFs,” said Walt Bettinger, CEO of Charles Schwab.

Bettinger emphasized that Schwab clients who buy ETFs online through Schwab
ETF OneSource will pay exactly the same operating expense ratios (OERs) they
would elsewhere, but without paying a commission.

No Commissions, More Control.

“Today’s investors, and the advisors who serve them, want sophisticated,
low-cost strategies and more control over their investment choices and
outcomes,” said Bettinger. “By working with these leading ETF managers to
offer the largest selection, we’ve created a new home for clients to buy and
sell ETFs that is an important complement to the tools and resources we offer
to help them achieve their goals.”

He elaborated, “Awareness and popularity of ETFs have been growing steadily
across the range of investors and advisors. Whether there is interest in
broad-based exposure to equity markets, access to a single asset class, or a
specific fund that seeks to reduce volatility – Schwab ETF OneSource offers a
solution – and we’re helping investors put more of their money to work for
them. It’s another example of Schwab challenging the status quo to bring
greater value to our clients.”

Cost Matters

According to the 2012 ETF Investor Study by Charles Schwab, released in
October of last year, cost is the number one factor investors look at when
selecting ETFs. Investors surveyed said they pay the most attention to OERs,
followed by trade commissions. Nearly forty percent say the ability to trade
ETFs commission-free is either ‘most important’ or ‘very important.’

The same study revealed that investor usage of ETFs is going strong, with 41
percent planning to invest more in ETFs this year. At the same time, there is
a distinct need for investor education, with 45 percent calling themselves
novices when it comes to understanding ETFs.

Assets in ETFs stand at $1.4 trillion as investors continue to embrace the
diversification, low cost, trading flexibility and transparency that ETFs tend
to offer.

“Our goal is to make ETF investing accessible, affordable and understandable,”
said Peter Crawford, senior vice president of Charles Schwab. “So while Schwab
ETF OneSource offers a highly compelling pricing story, this is not about cost
alone. Side-by-side with affordability, we also provide the guidance and
educational resources to help investors and advisors select the right ETFs to
meet their needs.”

New Portfolio-Building Tool

Crawford cited today’s  debut of the Schwab ETF Portfolio Builder™ as notable
for self-directed clients who want to create all-ETF portfolios that meet
their chosen risk profiles. Constructed from standard risk profiles and
featuring eight commission-free ETFs at launch (from Charles Schwab Investment
Management as well as others), this new tool makes it simple and affordable to
build a well-diversified portfolio. Clients choose a risk profile and can
adjust the number of shares for each ETF while viewing the impact on their
portfolio, and purchase the portfolio online.

The Schwab ETF Portfolio Builder rounds out Schwab’s robust set of tools and
resources, which includes:

  *The recently launched ETF Education Exchange™, another example of industry
    partnership, where investors have comprehensive access to the latest
    insights and intelligence from industry-wide ETF thought leaders;
  *The “ETF Research” tab on, where investors can access
    interactive tutorials and education in the “Understanding ETFs” tab to
    learn how ETFs work, and search for ETFs based on a wide range of criteria
    using the ETF Screener; and
  *ETF Select List™, where investors can find high-quality, low-cost ETFs
    screened by Schwab experts to help fill a gap or develop diversified

For a list of the ETFs available commission-free on Schwab ETF OneSource,

A leader in the retail ETF market, Charles Schwab had $152 billion custodied
on its platform as of December 31, 2012. Schwab ETFs™, which can be bought and
sold commission-free online in Schwab accounts, had $8.6 billion in assets as
of December 31, 2012. 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^2.

About Charles Schwab

The Charles Schwab Corporation (NYSE:SCHW) is a leading provider of financial
services, with more than 300 offices and 8.8 million active brokerage
accounts, 1.6million corporate retirement plan participants, 865,000banking
accounts, and $1.95trillion in client assets as of December 31, 2012.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; compliance and trade monitoring solutions; 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
lending 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 (0213-1113)

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Read our blog: Schwab Talk

Investors should consider carefully information contained in the prospectus,
including investment objectives, risks, charges, and expenses. You can obtain
a prospectus by visiting or calling 800-435-4000. Please read the
prospectus carefully before investing.

Charles Schwab & Co., Inc. receives remuneration from third-party ETF
companies participating in Schwab ETF OneSource for recordkeeping, shareholder
services, and other administrative services, including program development and

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 are bought and sold at
market price, which may be higher or lower than the net asset value (NAV).

Diversification strategies do not ensure a profit and do not protect against
losses in declining markets.

The information here is for general informational purposes only and should not
be considered an individualized recommendation or personalized investment
advice. The type of securities and investment strategies mentioned may not be
suitable for everyone. Each investor needs to review a security transaction
for his or her own particular situation.

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

PowerShares® is a registered trademark of Invesco PowerShares Capital
Management LLC (Invesco PowerShares). Invesco PowerShares and Invesco
Distributors, Inc. are indirect, wholly owned subsidiaries of Invesco Ltd.
“SPDR” is a registered trademark of Standard & Poor’s Financial Services, LLC
(S&P) and has been licensed for use by State Street Corporation. No financial
product offered by State Street or its affiliates is sponsored, endorsed,
sold, or promoted by S&P. USCF® and the United States Commodity Funds® are
registered trademarks of United States Commodity Funds LLC. All rights
reserved. Charles Schwab Investment Management, Inc. is the investment advisor
for Schwab ETFs and an affiliate of the Charles Schwab Corporation.

© 2013 Charles Schwab & Co., Inc. Member SIPC.

^1 Conditions Apply: Trades in ETFs available through Schwab ETF OneSource^TM
(including Schwab ETFs™) are available without commissions when placed online
in a Schwab account. Service charges apply for trade orders placed through a
broker ($25) or by automated phone ($5). An exchange processing fee applies to
sell transactions. Certain types of Schwab ETF OneSource transactions are not
eligible for the commission waiver, such as short sells and buys to cover (not
including Schwab ETFs). Schwab reserves the right to change the ETFs we make
available without commissions. All ETFs are subject to management fees and
expenses. See the pricing guide for additional information.

^2 This claim is based on expense ratio data comparisons between Schwab and
non-Schwab ETFs in their respective Lipper categories. Expense ratio data was
obtained from Strategic Insight Simfund as of 12/31/12. 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. Expense ratios are subject to change.

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Charles Schwab
Alison Wertheim, 415-667-0475
The Neibart Group
David Neibart, 718-875-4198
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