Charles Schwab Investment Management, Inc. (CSIM) reported today that
there will be no capital gains distributions in 2014 by any of the 21
exchange-traded funds (ETFs) in the Schwab ETFs™ family.
“ETFs are attractive to investors in part because of their tax efficient
structure, and Schwab ETFs have delivered on this expectation for the
past five years, with no distributed capital gains since the first
Schwab ETFs launched in 2009,” said John Sturiale, Senior Vice
President, Product Management, Charles Schwab & Co., Inc. “Maintaining
the highest standard of tax efficiency is an important piece of
delivering on CSIM’s promise to provide investors with simple, low-cost
investment products that help them achieve a well-diversified portfolio.”
For the past 25 years, CSIM has built funds that serve as the foundation
of an investor’s portfolio. As the eighth largest ETF provider with
$25.9 billion in assets under management (AUM)1, Schwab
continues to serve as an industry leader for ETF investors. Eleven of
Schwab’s 21 proprietary ETF offerings have surpassed $1 billion in AUM2.
The Schwab U.S. Broad Market ETFTM (SCHB) has more than $4B
in AUM, and the Schwab U.S. Large-Cap ETFTM (SCHX) has
exceeded $3 billion in AUM.
Schwab’s family of market-cap weighted ETFs continue to have the lowest
operating expense ratios (OERs) in their respective Lipper categories3
and its six Fundamental Index® ETFs – which track the Russell
Fundamental Index® Series and began trading in August 2013 – have
received meaningful traction from institutional and individual investors
alike.
About Charles Schwab Investment Management, Inc.
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 $252.3 billion in assets under
management as of November 30, 2014. It is among the country's largest
money market fund managers and is the third-largest provider of retail
index funds4. In addition to managing Schwab’s proprietary
funds, CSIM provides oversight for the sub-advised Laudus Fund family.
CSIM currently manages 76 mutual funds, 22 of which are actively-managed
funds, in addition to two separate account model portfolios, and 21 ETF
offerings.
About 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.
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1 Data source: ETF.com League Table, as of December 17, 2014; http://www.etf.com/sections/etf-league-tables/etf-league-table-dec-17-2014
2 Schwab ETFs Performance Summary, as of November 30, 2014.
3 This claim is based on expense ratio data comparisons
between Schwab Market-Cap ETFs and non-Schwab Market-Cap ETFs in their
respective Lipper categories. Securities in Market-Cap ETFs are selected
and weighted based on the size of their market capitalization. Expense
ratio data for both Schwab and non-Schwab Market-Cap ETFs was obtained
from Strategic Insight Simfund as of 09/30/14. 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 utilized represent the funds with
the lowest expense ratio within their fund family in their respective
Lipper category. Expense ratios are subject to change.
4 Based on index funds ranking from Strategic Insight, as of
November 30, 2014.
Disclosures:
Investors should carefully consider information contained in the
prospectus, including investment objectives, risks, charges and
expenses. You can request a prospectus by visiting SchwabETFs.com or
calling Schwab at 800-435-4000. Please read the prospectus carefully
before investing.
All regulated investment companies are obliged to distribute portfolio
gains to shareholders at year’s end. There is no guarantee that capital
gains distributions will not be made in the future. Trading shares of
the Funds will also generate tax consequences and transaction expenses.
This material is not intended to be tax advice. The tax consequences
vary by individual taxpayer. Please consult your tax professional or
financial adviser for more information with regard to your specific
situation.
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. Shares are bought and sold at market
price, which may be higher or lower than the net asset value (NAV).
Russell Investments (Russell) and Research Affiliates LLC (RA) have
entered into a strategic alliance with respect to the Russell
Fundamental Index Series. Subject to RA’s intellectual property rights
in certain content, Russell is the owner of all copyrights related to
the Russell Fundamental Index Series. Russell and RA jointly own all
trademark and service mark rights in and to the Russell Fundamental
Index Series. Schwab is not affiliated with Russell or RA. Schwab
Fundamental Index Funds are not sponsored, endorsed, sold or promoted by
Russell or RA, and Russell and RA do not make any representation
regarding the advisability of investing in shares of the fund. Research
Affiliates is the owner of certain intellectual property (see all
applicable rights disclosures and notices at www.researchaffiliates.com/Pages/legal.aspx#d
, which are fully incorporated herein.)
Schwab ETFs are distributed by SEI Investments Distribution Co. (SIDCO).
SIDCO is not affiliated with the Charles Schwab Corporation. Learn more
at schwab.com/SchwabETFs.
Charles Schwab Investment Management, Inc. is the investment advisor for
Schwab ETFs and an affiliate of the Charles Schwab Corporation. Charles
Schwab & Co., Inc. is an affiliate of the Charles Schwab Corporation.
(1214-8496)
Copyright Business Wire 2014