Exchange-Traded Funds (ETFs)
WHAT YOU SHOULD KNOW
Consider expense ratios, commissions, and bid/ask spreads.
The most obvious ETF fees are commissions and operating expenses. Many investors overlook bid/ask spreads, which represent the difference between the price at which an ETF can be bought and the price at which it is being sold. The more you trade ETFs, the more important commissions and bid/ask spreads become. The expense ratio becomes more important the longer you hold an ETF position.
1. Conditions 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 we make 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, including investment objectives, risks, charges, and expenses. You can request a prospectus by calling 800-435-4000. Please read the prospectus 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).
Charles Schwab & Co., Inc. receives remuneration from third-party ETF companies participating in Schwab ETF OneSource™ for record keeping, shareholder services and other administrative services, including program development and maintenance.
Schwab's short-term redemption fee of $49.95 will be charged on redemption of funds purchased through Schwab's Mutual Fund OneSource®; service (and certain other funds with no transaction fee) and held for 90 days or less. Schwab reserves the right to exempt certain funds from this fee, including Schwab Funds®; which may charge a separate redemption fee, and funds that accommodate short-term trading. Trades in no-load mutual funds available through the Mutual Fund OneSource service (including Schwab Funds), as well as certain other funds, are available without transaction fees when placed through Schwab.com or our automated phone channels. For each of these trade orders placed through a broker, a $25 service charge applies. Schwab reserves the right to change the funds we make available without transaction fees and to reinstate fees on any funds. Charles Schwab & Co., Inc. (member SIPC) receives remuneration from fund companies participating in the Mutual Fund OneSource service for recordkeeping and shareholder services and other administrative services. All ETFs are subject to management fees and expenses.
Schwab ETFs are distributed by SEI Investments Distribution Co. (SIDCO).
The Schwab Center for Financial Research is a division of Charles Schwab & Co., Inc.