WHAT YOU SHOULD KNOW
Each dollar spent in operating expenses can impact returns.
Operating expense ratios (OERs) cover the management of the fund, the sales, and the distribution (12b-1 fee). These fees can vary, so it pays to compare OERs, especially on similar funds. In general, the smaller, more niche, and global the fund’s investments are, the higher the operating expenses, because of the extra work involved.
What is the general range for this fee?
Actively managed funds: 1.50% | Indexed or passive funds: 0.25%
Global equity funds (actively managed or index): 0.80%
Source: ICI report 2012 Factbook.
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.
Schwab’s short-term redemption fee of $49.95 will be charged on the 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.