Schwab Asset Management Reduces Fees on Four Equity Index ETFs and Announces Mutual Fund Share Splits
Schwab Asset Management®, the asset management arm of The Charles Schwab Corporation and the fifth-largest provider of ETFs1, today announced the reduction of operating expense ratios (OERs) for four equity index ETFs along with forward share splits on six Schwab mutual funds. The ETF fee reductions, effective June 10, 2025, will make the cost of all Schwab equity and fixed income market cap-weighted index ETFs less than 10 basis points. The forward share splits include the Schwab 1000 Index® Fund (SNXFX), which, nearly 35 years after launch, will return to a net asset value (NAV) more closely aligned to its initial share price of $10.
Schwab Equity Index ETFs' Expense Ratio Changes
Name of Fund (Ticker) |
Operating Expense Ratio Prior to
|
Operating Expense Ratio After
|
Schwab 1000 Index® ETF (SCHK) |
0.05% |
0.03% |
Schwab International Equity ETF (SCHF) |
0.06% |
0.03% |
Schwab International Small-Cap Equity ETF (SCHC) |
0.11% |
0.08% |
Schwab Emerging Markets Equity ETF (SCHE) |
0.11% |
0.07% |
"Schwab is proud to be a leader in democratizing investing, and we are constantly looking for new opportunities to make investing as accessible as possible," said John Sturiale, Head of Product Management and Innovation, Schwab Asset Management. "Today, we're taking another important step in advancing our commitment to providing investors with low-cost, high-quality building blocks for a well-diversified portfolio."
Forward share splits increase the number of shares outstanding and decrease the NAV per share. The share splits will not alter the rights or change the total value of a shareholder's investment, nor will they be a taxable event for shareholders. They are scheduled to occur on August 15, 2025, and will apply to shareholders of record on or about August 13, 2025.
Schwab Mutual Fund Share Splits
Name of Fund (Ticker) |
Split Ratio |
Schwab 1000 Index® Fund (SNXFX) |
10-1 (Shareholders will receive ten shares in exchange for every one share they currently own)
|
Schwab U.S. Large-Cap Growth Index Fund (SWLGX) |
8-1 (Shareholders will receive eight shares in exchange for every one share they currently own)
|
Schwab Total Stock Market Index Fund (SWTSX) |
7-1 (Shareholders will receive seven shares in exchange for every one share they currently own)
|
Schwab S&P 500 Index Fund (SWPPX) |
6-1 (Shareholders will receive six shares in exchange for every one share they currently own)
|
Schwab U.S. Mid-Cap Index Fund (SWMCX) |
5-1 (Shareholders will receive five shares in exchange for every one share they currently own)
|
Schwab U.S. Large-Cap Value Index Fund (SWLVX) |
4-1 (Shareholders will receive four shares in exchange for every one share they currently own)
|
These moves to increase accessibility for investors come on the heels of Schwab's launch of National Investing Day on May 1, 2025. The day, which will be recognized annually, aims to raise awareness about the power of long-term investing and inspire more people to get invested and stay invested. Schwab's efforts to reduce barriers to investing, raise awareness and provide robust investing education are all part of its enduring mission to help people reach their financial goals.
To learn more about Schwab Asset Management's entire lineup of ETFs and mutual funds, visit www.schwabassetmanagement.com.
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 March 31, 2025, Schwab Asset Management managed approximately $1.4 billion on a discretionary basis and $33.8 billion on a non-discretionary basis. More information is available at www.schwabassetmanagement.com.
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 X, Facebook, YouTube 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 view and download a 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 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.
Schwab Asset Management® is the dba name for Charles Schwab Investment Management, Inc., the investment adviser for Schwab Funds, Schwab ETFs, and separately managed account strategies. Schwab Funds are distributed by Charles Schwab & Co, Inc. (Schwab), Member SIPC. Schwab ETFs are distributed by SEI Investments Distribution Co. (SIDCO). Schwab Asset Management and Schwab are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation, and are not affiliated with SIDCO.
0625-0059
| ____________________ |
1 Source: Lipper, March 31, 2025. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250609650185/en/
Christine Underhill
Charles Schwab
415-961-3790