Schwab ETFs™ Achieve New Milestone: $10 Billion in Assets Under Management

  Schwab ETFs™ Achieve New Milestone: $10 Billion in Assets Under Management

Business Wire

SAN FRANCISCO -- February 21, 2013

Investors searching for core, low-cost exchange-traded funds (ETFs) to use as
the building blocks of their portfolios helped push Schwab ETFs to a new
milestone: the suite of 15 equity and fixed income ETFs reached $10.02 billion
in assets under management as of  February 8, 2013. Charles Schwab Investment
Management (CSIM) reached this threshold just slightly more than three years
after launching its first proprietary ETFs in November 2009.

Marie A. Chandoha, President and Chief Executive Officer of Charles Schwab
Investment Management Inc ...

Marie A. Chandoha, President and Chief Executive Officer of Charles Schwab
Investment Management Inc. (Photo: Business Wire)

“I want to thank investors for choosing Schwab ETFs as the right place for
their hard-earned assets,” said Marie Chandoha, president of CSIM. “For Schwab
ETFs, what matters most is that we continue evolving to meet client demand for
quality ETFs in key asset classes at an incredible value. And, we think that
crossing the $10 billion mark in such a short period of time is just the

When Schwab debuted its first ETFs in 2009, the company broke new ground by
offering them to clients commission-free online^1. In September 2012, Schwab
made investing in ETFs more affordable for clients again by slashing expense
ratios on all Schwab ETFs – they each have the lowest operating expense ratios
in their respective Lipper categories^2.

Schwab’s 15 proprietary ETFs continue to be available commission-free online,
and are part of the new $0 commission Schwab ETF OneSource™ featuring 105 ETFs
from leading providers in major asset classes^1. CSIM’s suite of ETFs spans
the major asset classes, providing retail investors with the core building
blocks of an investment portfolio. Eight of the funds now have a three-year
track record, none have paid capital gains distributions to date, and all have
competitive tracking errors. Three Schwab ETFs have over $1 billion in assets
under management, including the Schwab Broad Market ETF (SCHB), Schwab
International Equity ETF (SCHF) and Schwab U.S. Large-Cap ETF (SCHX). The
Schwab Emerging Markets Equity ETF (SCHE) has $871 million in assets as of
February 8, 2013.

Schwab ETFs

    Symbol    Description               Assets Under    Expense 
                                                  Management^2       Ratio
        Domestic Equity ETFs                                                 
        SCHB      Schwab U.S. Broad         $1.630 Bn       0.04%   
                     Market ETF
        SCHX      Schwab U.S. Large-Cap     $1.200 Bn       0.04%   
        SCHG      Schwab U.S. Large-Cap     $0.602 Bn       0.07%   
                     Growth ETF
        SCHV      Schwab U.S. Large-Cap     $0.479 Bn       0.07%   
                     Value ETF
        SCHD      Schwab U.S. Dividend      $0.658 Bn       0.07%   
                     Equity ETF
        SCHM      Schwab U.S. Mid-Cap       $0.430 Bn       0.07%   
        SCHA      Schwab U.S. Small-Cap     $0.917 Bn       0.10%   
        SCHH      Schwab U.S. REIT ETF      $0.448 Bn       0.07%   
        International Equity ETFs                                            
        SCHF      Schwab International      $1.130 Bn       0.09%   
                     Equity ETF
                     Schwab International
        SCHC                                $0.231 Bn       0.20%   
                     Small-Cap Equity ETF
                     Schwab Emerging
        SCHE                                $0.871 Bn       0.15%   
                     Markets Equity ETF
        Fixed Income ETFs                                                    
        SCHZ      Schwab U.S. Aggregate     $0.385 Bn       0.05%   
                     Bond ETF
        SCHP      Schwab U.S. TIPS ETF      $0.578 Bn       0.07%   
                     Schwab Short-Term
        SCHO                                $0.255 Bn       0.08%   
                     U.S. Treasury ETF
        SCHR      Intermediate-Term         $0.207 Bn       0.10%   

                     U.S. Treasury ETF

Schwab is an industry leader in serving ETF investors, with $152 billion in
client ETF assets as of 12/31/12. The company offers a host of resources to
help clients understand and choose ETFs that fit their investment needs,
including the Schwab ETF Select List™; tutorials, research and tools available
via Schwab’s online ETF center; workshops at local Schwab branches; and the
Schwab ETF Education Exchange™, a new website aggregating educational content
and market insights from ETF industry leaders.

About Charles Schwab Investment Management

Founded in 1989, Charles Schwab Investment Management, Inc. (CSIM), a
subsidiary of The Charles Schwab Corporation, is one of the nation's largest
asset management companies with $219.3 billion in assets under management as
of December 31, 2012. 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 76 mutual 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 8.8 million active brokerage
accounts, 1.6 million corporate retirement plan participants, 874,000 banking
accounts, and $2.01 trillion in client assets as of January 31, 2013. The
Company was ranked ‘Highest in Investor Satisfaction With Self-Directed
Services’ in the 2012 US Self-Directed Investor Satisfaction StudySM 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 Schwab Advisor
Services. Its banking subsidiary, Charles Schwab Bank (member FDIC and an
Equal Housing Lender), provides banking and lending services and products.
More information is available at and


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^1 Conditions Apply: Trades in ETFs available through Schwab ETF OneSource™
(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. Please see 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. Information has been
sourced from Lipper, a Thomson Reuters Company ("Lipper Content"). All such
information is protected by copyright: ©2012 THOMSON REUTERS. All rights

^3 Strategic Insight, November 2012

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

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

Although Schwab ETFs have not paid capital gains distributions in the past,
there can be no assurance that this will continue into the future.

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

The ETF Education Exchange website ("the site") is for informational purposes
only and is not an offer, solicitation to purchase or sell any particular
security or pursue a particular investment strategy. The types of securities
or strategies mentioned herein may not be suitable for everyone. Each investor
needs to review an investment for his or her own particular situation. All
expressions of opinion are subject to change without notice in reaction to
shifting market conditions.

©2013 Charles Schwab & Co., Inc. All rights reserved. Unauthorized access is
prohibited. Usage will be monitored.

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