Schwab Unveils the Schwab 1000 Index® ETF

Schwab Unveils the Schwab 1000 Index® ETF

New addition in family of low-cost index funds tracks the Schwab 1000 Index® which launched in 1991

Charles Schwab Investment Management (CSIM), an asset management arm of The Charles Schwab Corporation, today announced it is launching the Schwab 1000 Index ETF (SCHK) – a new low-cost way to gain exposure to the potential growth of America’s largest 1,000 stocks. The new ETF will begin trading on October 11, 2017, and will be immediately available through Schwab’s commission-free ETF program – Schwab ETF OneSource™.¹

“Index investing is a fantastic way to build the core holdings of an investment portfolio. Companies are made to grow, and we launched the Schwab 1000 Index and mutual fund in 1991 to help investors participate in the innovation and long-term growth of the largest 1,000 stocks in the U.S. in a simple and cost-effective way,” said Schwab founder and chairman Charles Schwab. “I’m thrilled that investors can now benefit from the potential growth of these firms with the ease and efficiency of a low-cost ETF.”

With an operating expense ratio (OER) of five basis points (0.05%), the Schwab 1000 Index ETF offers broad U.S. market exposure at a low cost that is one-half to one-third the expense of other widely recognized ETFs tracking the largest 1,000 U.S. stocks.

“We are thrilled to introduce investors to the Schwab 1000 Index ETF, the newest product in our family of low-cost, foundational index funds,” said Marie Chandoha, president and chief executive officer of Charles Schwab Investment Management. “We serve a wide range of investors with different needs, and now they have one more affordable way to gain exposure to the U.S. market through an index with a 26-year track record – at a great value,” Chandoha said.

History of the Schwab 1000 Index and Schwab 1000 Index Mutual Fund

A leader in investment management, Schwab’s history as an indexer began in 1991 when company founder and chairman Charles Schwab spearheaded the launch of the Schwab 1000 Index and the mutual fund that tracks it, the Schwab 1000 Index® Fund (SNXFX). The flagship Schwab 1000 Index includes the 1,000 largest stocks of publicly traded companies in the U.S., providing exposure to U.S. large- and mid-cap stocks. The index is designed to offer exposure to 100% of the U.S. large-cap space and 90% of the entire U.S. equity market. With a 26-year track record, the index has outperformed the S&P 500 index, on an annualized basis, since its inception. The mutual fund has $7.5 billion in assets as of 9/30/2017 and has an operating expense ratio of five basis points (0.05%), with no investment minimums.

The Schwab 1000 Index ETF is the 22^nd ETF offered by Charles Schwab Investment Management.

About Charles Schwab Investment Management

Founded in 1989, Charles Schwab Investment Management, Inc., a subsidiary of The Charles Schwab Corporation, is one of the nation’s largest asset management companies, with more than $320 billion in assets under management as of 6/30/17. It is also the third largest provider of index mutual funds and the fifth largest provider of ETFs*.

More information is available at csimfunds.com.

*Source: Strategic Insight, as of 6/30/17; based on assets under management.

About Charles Schwab

At 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, Facebook, YouTube and LinkedIn.

Disclosures

¹Conditions 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 it makes available without commissions. All ETFs are subject to management fees and expenses. Please see pricing guide for additional information.

Investors should consider carefully information contained in the prospectus, or if available, the summary prospectus, including investment objectives, risks, charges and expenses. You can request a prospectus by visiting schwabfunds.com/prospectus. Please read it carefully before investing.

Investment returns and principal value 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 ETFs are bought and sold at market price, which may be higher or lower than the net asset value (NAV). Brokerage commissions will reduce returns.

The Schwab 1000 Index may hold more or less than 1,000 stocks due to corporate actions and/or application of market cap breakpoints and buffers.

Charles Schwab Investment Management, Inc. (CSIM) is the investment adviser for Schwab ETFs and Schwab Funds. Schwab ETFs are distributed by SEI Investments Distribution Co. (SIDCO). Schwab Funds are distributed by Charles Schwab & Co., Inc. (Schwab) Member SIPC. CSIM and Schwab are affiliates and are subsidiaries of The Charles Schwab Corporation. SIDCO is not affiliated with CSIM or Schwab.

©2017 Charles Schwab Investment Management, Inc. All rights reserved.

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Charles Schwab
Alison Wertheim, 415-667-0475

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