Charles Schwab Investment Management to Launch Schwab International Dividend Equity ETF

Rhea-AI Summary

Charles Schwab Investment Management announced the Schwab International Dividend Equity ETF (SCHY) set to begin trading around April 29, 2021. With an operating expense ratio of 0.14%, it positions itself as a low-cost option for investors seeking exposure to international dividend equities. This ETF will track the Dow Jones International Dividend 100 Index, expanding Schwab's suite of ETFs to 26. The launch responds to rising demand for income-focused investment strategies, particularly among Baby Boomers.

Positive

• Low operating expense ratio of 0.14% makes SCHY attractive for cost-conscious investors.
• Expands Schwab's ETF offerings to meet rising demand for dividend equity funds.

Negative

• Potential risks associated with international investments, including currency fluctuations and geopolitical risks.

Charles Schwab Investment Management, Inc. (CSIM) announced today the Schwab International Dividend Equity ETF (SCHY) is expected to begin trading on or around April 29, 2021. With an operating expense ratio (OER) of 0.14%, the fund will be among the lowest cost ETFs providing exposure to international dividend equity securities.

“Every day, about 10,000 Baby Boomers turn 65 and many of them – as well as other investors – are seeking income strategies as part of a diversified portfolio,” said David Botset, SVP of Product Strategy for CSIM. “We continue to see a spike in demand for dividend equity funds, and are pleased to be expanding the range of solutions we offer to include a low-cost international choice.”

The Schwab International Dividend Equity ETF will track the Dow Jones International Dividend 100 Index and will be the 26^th Schwab ETF. For a complete list of the 25 Schwab ETFs available today, see here.

About Charles Schwab Investment Management

As of December 31, 2020, CSIM managed approximately $549.2 billion on a discretionary basis and approximately $37.5 billion on a non-discretionary basis. CSIM provides non-discretionary advisory services to the Schwab Trust Bank Collective Investment Trusts, including research and recommendations relating to asset allocation, portfolio construction, cash-flow monitoring and advisor selection and retention. Some trusts include multiple unit classes. More information is available at www.schwabfunds.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 aboutschwab.com. Follow us on Twitter, 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 schwabfunds.com/prospectus. 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 of ETF are bought and sold at market price, which may be higher or lower than the net asset value (NAV). International investments involve additional risks, which include differences in financial accounting standards, currency fluctuations, geopolitical risk, foreign taxes and regulations, and the potential for illiquid markets. Investing in emerging markets may accentuate these risks.

Dividend focused funds may underperform funds that do not limit their investment to dividend paying stocks. Stocks held by the fund may reduce or stop paying dividends, affecting the fund’s ability to generate income.

Diversification strategies do not ensure a profit and do not protect against losses in declining markets.

Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (Dow Jones). The Dow Jones International Dividend 100 Index is a product of S&P Dow Jones Indices LLC and/or its affiliates, and has been licensed for use by Charles Schwab Investment Management, Inc. The Schwab International Dividend Equity ETF is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, or any of their respective affiliates and neither S&P Dow Jones Indices LLC, Dow Jones, nor any of their respective affiliates make any representation regarding the advisability of investing in such product. Charles Schwab Investment Management, Inc. (CSIM) is the investment advisor for Schwab ETFs. Schwab ETFs are distributed by SEI Investments Distribution Co. (SIDCO). CSIM and Schwab, are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation, and are not affiliated with SIDCO.

©2021 Charles Schwab Investment Management, Inc. All rights reserved.

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FAQ

What is the operating expense ratio of the Schwab International Dividend Equity ETF (SCHY)?

The operating expense ratio is 0.14%.

When will the Schwab International Dividend Equity ETF (SCHY) begin trading?

The ETF is expected to begin trading on or around April 29, 2021.

What index does the Schwab International Dividend Equity ETF (SCHY) track?

It tracks the Dow Jones International Dividend 100 Index.

Why is there a growing demand for dividend-focused ETFs like SCHY?

The growing number of Baby Boomers seeking income strategies and diversification in their investment portfolios is driving demand.