Schwab Asset Management to Launch the Schwab Mortgage-Backed Securities ETF
With an expense ratio of 0.03%, the Schwab Mortgage-Backed Securities ETF is priced in line with the lowest-priced peer ETFs based on the
“It’s been a notable period for the fixed income market, and at Schwab Asset Management we’re deeply committed to helping clients with their fixed income investing needs. We’re excited to introduce the Schwab Mortgage-Backed Securities ETF as the latest example of that effort,” said
The goal of the Schwab Mortgage-Backed Securities ETF is to track as closely as possible, before fees and expenses, the Bloomberg US MBS Float Adjusted Total Return Index. The ETF invests in mortgage-backed pass-through securities guaranteed by the
The launch of the Schwab Mortgage-Backed Securities ETF occurs when Schwab Asset Management is celebrating 15 years since entering the ETF space. Since that time, Schwab Asset Management has become the fifth-largest provider of ETFs2 and is known for its commitment to low costs and taking a thoughtful approach to growing its lineup. To learn more visit www.schwabassetmanagement.com/about.
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
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 www.aboutschwab.com. Follow us on Twitter/X, Facebook, 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.
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.
Mortgage-backed securities (MBS) may be more sensitive to interest rate changes than other fixed income investments. They are subject to extension risk, where borrowers extend the duration of their mortgages as interest rates rise, and prepayment risk, where borrowers pay off their mortgages earlier as interest rates fall. These risks may reduce returns.
Certain
Schwab Asset Management® is the dba name for
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1 Source: Lipper,
2 Source: ETF.com, ETF League Table,
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Charles Schwab
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