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A small difference in fund expenses can make a big difference in your returns.
- Lowest costs in the industry on market cap index funds and ETFs with no minimums.†
- Everyone pays the same for Schwab index funds—whether you have $5 or $5 million.
Here's how Schwab market cap index fund expenses compare.1
|Schwab Total Stock Market Index Fund®||Vanguard Total Stock Market Index Fund||Fidelity Total Stock Market Index Fund|
|S&P 500 Index|
|Schwab® S&P 500 Index Fund||Vanguard 500 Index Fund||Fidelity 500 Index Fund|
|Schwab 1000 Index® Fund||Vanguard Large-Cap Index Fund||Fidelity|
|Schwab Small-Cap Index Fund®||Vanguard Small-Cap Index Fund||Fidelity Small Cap Index Fund|
|International Multi-Cap Core|
|Schwab International Index Fund®||Vanguard Developed Markets Index Fund||Fidelity International Index Fund|
|Schwab® U.S Aggregate Bond Index Fund||Vanguard Total Bond Market Index Fund||Fidelity US Bond Index Fund|
|Short Investment Grade|
|Schwab® Short-Term Bond Index Fund||Vanguard Short-Term Bond Index Fund||N/A|
|Schwab® Treasury Inflation Protected Securities Index Fund||Vanguard Short-Term Inflation-Protected Securities Index Fund||Fidelity Inflation-Protected Bond Index Fund|
1. The table is based on net expense ratio data comparisons between Schwab market-cap index mutual funds and non-Schwab market-cap index mutual funds. The non-Schwab mutual funds shown represent Vanguard and Fidelity index mutual funds with the lowest expense ratio with a $10,000 minimum investment within their fund family in their respective Lipper category. Schwab operating expense ratios (OERs) listed reflect OERs as of 3/1/17. Competitor net OERs represent the lowest OERs reported from annual reports, prospectuses, and Strategic Insight Simfund, as reflected on 2/24/17. Funds in the same Lipper category may track different indexes, have differences in holdings, and show different performance. Competitors may offer more than one market-cap index mutual fund in a Lipper category, including funds that are not market-cap index mutual funds. Expense ratios are subject to change.
2. An Institutional share class is expected to become available on 4/11/17 with an OER of 0.035%, according to an amended prospectus filing on 3/10/17. Vanguard offers the Vanguard Institutional Index Fund—Institutional class at 0.04%, which is a separate fund from the Vanguard 500 Index Fund, but is designed to track the S&P 500 Index.
Ask us your questions.
Why is Charles Schwab Investment Management lowering expenses and removing investment minimums across all Schwab index mutual funds?
Charles Schwab Investment Management is committed to providing the quality products our partners and clients need, with competitive expenses. Schwab market cap index mutual funds and ETFs now have the lowest expenses in the industry† because a small difference in costs can make a big difference in your returns. And we’re removing investment minimums on index funds to make investing accessible for every investor.
I am an existing client in one or more Schwab index mutual funds or ETFs. What should I do to take advantage of the lower expenses?
You don't have to do anything. If you currently invest in one or more of Schwab’s index mutual funds and ETFs, your total operating expenses will automatically be reduced to the new effective management fee on March 1, 2017 (changes to Fundamental Index® mutual funds not effective until 5/1**).
**With the exception of Schwab Fundamental Emerging Markets Large Company Index Fund, all changes are pending shareholder approval of an Amended and Restated Investment Advisory and Administration Agreement. Fundamental Index is a registered trademark of Research Affiliates, LLC.
How is Charles Schwab Investment Management able to offer its index mutual funds and ETFs to clients at such low expense levels?
We are able to offer these products at competitive expenses because of our scale and by improving efficiency through our operations.
Will the Schwab index mutual funds still be available on Schwab Mutual Fund and ETF OneSource® platforms?
Yes. All of Schwab’s index mutual funds and ETFs will continue to be offered on the Mutual Fund OneSource and ETF OneSource platforms.
Have more questions?
Call us at 877-804-3521 if you have more questions or need assistance.
*Asset levels and expenses for S&P 500 Index Funds expenses obtained from annual reports, prospectuses, and Strategic Insight Simfund, as reflected on 2/24/17.
†This claim is based on prospectus net expense ratio data comparisons between Schwab market-cap index mutual funds (no minimum investment required) and ETFs and non-Schwab market-cap index mutual funds and ETFs in their respective Lipper categories. Schwab operating expense ratios (OERs) reflect OERs as of 3/1/17. Competitor net OERs represent the lowest OERs reported from annual reports, prospectuses, and Strategic Insight Simfund, as reflected on 2/24/17. Funds in the same Lipper category may track different indexes, have differences in holdings, and show different performance. Competitors may offer more than one market-cap index mutual fund in a Lipper category, including funds that are not market-cap index mutual funds. Expense ratios are subject to change. Minimums are subject to change and ETFs require investment of at least one share.
Investors should consider carefully information contained in the prospectus or, if available, the summary prospectus, including investment objectives, risks, charges, and expenses. Please read it carefully before investing.
Investing involves risk, including possible loss of principal.
Broker-assisted trades may have additional charges.
Charles Schwab Investment Management, Inc. (CSIM), the investment advisor for Schwab Funds®, and Charles Schwab & Co., Inc. (Schwab), Member SIPC, the distributor for Schwab Funds, are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation. CSIM is the investment advisor for Schwab ETFs™. Schwab ETFs are distributed by SEI Investments Distribution Co. (SIDCO), One Freedom Valley Drive, Oaks, PA 19456. SIDCO is not affiliated with CSIM.
Charles Schwab & Co., Inc., 211 Main Street, San Francisco, CA 94105
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CC0911437 (0317-TCAF) (03/17)