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Products July 14, 2011
Schwab Releases U.S. Aggregate Bond ETF
Charles Schwab has launched the Schwab U.S. Aggregate
Bond ETF, which aims to provide broad exposure
to U.S. taxable bond market.
Reported by PLANADVISER staff
The new fund, which trades under the symbol SCHZ, is the fourteenth fund to join Schwab’s line up of proprietary exchange-traded funds. It offers low-cost, single-investment exposure to four major sectors of the investment grade, taxable U.S. bond market: Treasuries, government agencies, corporate and securitized bonds.
The fund seeks to track, before fees and expenses, the total return of the Barclays Capital U.S. Aggregate Bond Index, a broad-based benchmark that tracks the performance of the taxable, investment grade U.S. bond market. SCHZ has the lowest operating expense ratio (0.10%) among ETFs in the Morningstar Intermediate Term Bond category, according to the announcement, and can be bought and sold commission-free online in Schwab accounts.
“We have seen tremendous demand for a single vehicle that provides a core, diversified U.S. fixed income allocation,” said John Sturiale, vice president of product management at Schwab.