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Schwab tackles ‘gaps’ in bond ETF business with 3 new funds

Charles Schwab is stepping up its offerings of fixed-income ETFs.

The San Francisco-based broker’s asset management arm is planning to start three new products focused on corporate bonds and Treasurys, almost doubling the number of debt ETFs it offers, regulatory filings show.

Fees were nearly half the price of the top-performing active funds.
September 4

The decision marks a shift for Charles Schwab Investment Management, which has largely ridden its equity-fund offerings to become the fifth-largest ETF issuer in the U.S. More than 84% of the $146 billion in Schwab ETFs is invested in stocks. But with global bond ETFs surpassing $1 trillion this year, debt funds are increasingly important for further growth.

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Pedestrians pass in front of a Charles Schwab Corp. office building in New York, U.S., on Friday April 14, 2017. Charles Schwab Corp. is scheduled to release earning figures on April 18. Photographer: Victor J. Blue/Bloomberg

The firm is keen to fill “gaps” in its fixed-income lineup, CSIM’s Jonathan de St. Paer said earlier this year before taking over as chief executive in April.

The planned funds and their trading tickers are:

  • Schwab Short-Term Corporate Bond ETF (SCHJ)
  • Schwab Intermediate-Term Corporate Bond ETF (SCHI)
  • Schwab Long-Term U.S. Treasury ETF (SCHQ)

The firm didn’t disclose the intended management fees.