Schwab Asset Management Announces ETF Share Splits

Rhea-AI Summary

Schwab Asset Management has announced forward share splits for five Schwab ETFs, intended to increase the number of shares outstanding while decreasing their Net Asset Value (NAV) per share. This initiative will take effect for shareholders of record as of March 8, 2022, with the trades reflecting the new share prices starting March 11, 2022. The affected ETFs include the Schwab U.S. Large-Cap Growth ETF (SCHG), Schwab U.S. Large-Cap ETF (SCHX), Schwab U.S. Broad Market ETF (SCHB), Schwab U.S. Small-Cap ETF (SCHA), and Schwab U.S. REIT ETF (SCHH). Overall, total investment value for shareholders remains unchanged.

Positive

• Share splits can enhance liquidity by making shares more affordable for a broader range of investors.
• Maintaining total investment value can attract new investors to the Schwab ETFs.

Negative

• None.

WESTLAKE, Texas--(BUSINESS WIRE)--

Schwab Asset Management, the asset management arm of The Charles Schwab Corporation, is announcing forward share splits on five Schwab ETFs. Forward ETF share splits increase the number of shares outstanding and decrease the Net Asset Value (NAV) per share. The share splits will not change the total value of a shareholder’s investment.

The ETF share splits will apply to shareholders of record as of the close of markets on March 8, 2022, payable after the close of the markets on March 10, 2022. Shares will begin trading at their post-split price on March 11, 2022.

Ticker		Fund Name		NAV per Share (as of 2/23/22)		Split Ratio
SCHG		Schwab U.S. Large-Cap Growth ETF		$135.36		2:1
SCHX		Schwab U.S. Large-Cap ETF		$100.47		2:1
SCHB		Schwab U.S. Broad Market ETF		$99.63		2:1
SCHA		Schwab U.S. Small-Cap ETF		$89.45		2:1
SCHH		Schwab U.S. REIT ETF		$45.46		2:1

The following table illustrates the effect of a hypothetical 2-for-1 forward ETF share split:

Period		Number of Shares Owned		Hypothetical NAV per Share		Total Value of Shares
Pre-Split		100		$100.00		$10,000
Post-Split		200		$50.00		$10,000

For a complete list of Schwab ETFs, see here Charles Schwab.

About Schwab Asset Management

One of the industry’s largest and most experienced asset managers, Schwab Asset Management offers a focused lineup of competitively priced ETFs, mutual funds and separately managed account strategies designed to serve the central needs of most investors. By operating through clients’ eyes, and putting them at the center of our decisions, we aim to deliver exceptional experiences to investors and the financial professionals who serve them. As of December 31, 2022, Schwab Asset Management managed approximately $635.8 billion on a discretionary basis and $41.5 billion on a non-discretionary basis. More information is available at www.schwabassetmanagement.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 www.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 obtain a prospectus, or if available, a summary prospectus by visiting www.schwabassetmanagement.com/schwabetfs_prospectus. Please read it carefully before investing.

Investment returns and principal value 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 ETFs are bought and sold at market price, which may be higher or lower than the net asset value (NAV).

Schwab Asset Management is the dba name for Charles Schwab Investment Management, Inc., the investment adviser for Schwab ETFs. Schwab ETFs are distributed by SEI Investments Distribution Co. (SIDCO). Schwab Asset Management and Charles Schwab & Co., Inc. (Schwab) Member SIPC are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation and not affiliated with SIDCO.

(0222-2EVT)

View source version on businesswire.com: https://www.businesswire.com/news/home/20220223006408/en/

Christine Hudacko

Charles Schwab

415-961-3790

Source: The Charles Schwab Corporation

FAQ

What date will the Schwab ETF share splits take effect?

The Schwab ETF share splits will take effect for shareholders of record as of March 8, 2022.

What is the split ratio for the Schwab ETFs?

The split ratio for the Schwab ETFs is 2-for-1.

When will the new share prices for Schwab ETFs be reflected in trading?

The new share prices for Schwab ETFs will begin trading on March 11, 2022.

What are the affected Schwab ETFs with forward share splits?

The affected Schwab ETFs include SCHG, SCHX, SCHB, SCHA, and SCHH.

Will the forward share splits affect the total value of my investment?

No, the forward share splits will not change the total value of a shareholder's investment.