Schwab Asset Management Announces Zero Capital Gains Distributions for Schwab ETFs for 2022

Rhea-AI Summary

Schwab Asset Management, a prominent player in the ETF market with over $260 billion in assets, announced there will be no capital gains distributions for its 29 ETFs for the 2022 tax year. This move reinforces its commitment to tax efficiency and low fees for investors, as highlighted by Managing Director David Botset. With approximately $614.1 billion under discretionary management as of September 30, 2022, Schwab continues to prioritize investor needs and deliver exceptional investment experiences.

Positive

• No capital gains distributions for 29 ETFs for the 2022 tax year, enhancing tax efficiency for investors.
• Schwab managed approximately $614.1 billion on a discretionary basis, indicating strong asset management capabilities.
• Focus on lowering fees for investors strengthens Schwab's competitive position in the ETF market.

Negative

• None.

WESTLAKE, Texas--(BUSINESS WIRE)-- Schwab Asset Management, the asset management arm of The Charles Schwab Corporation and the fifth largest provider of ETFs with more than $260 billion in assets¹, announced today there will be no capital gains distributions for the 2022 tax year by any of the 29 exchange-traded funds (ETFs) in the Schwab ETF family.

“Schwab Asset Management has a legacy of lowering fees for investors,” said David Botset, Managing Director, Head of Equity Product Management and Innovation, Schwab Asset Management. “Our focus on helping investors extends to our ability to deliver tax efficiency in different market environments, and we’re proud to have done that again this year.”

For a complete list of Schwab ETFs, see here ETFs | SchwabAssetManagement.

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 September 30, 2022, Schwab Asset Management managed approximately $614.1 billion on a discretionary basis and $31.9 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 schwabassetmanagement.com/prospectus. Please read it 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).

Past distributions are not indicative of future trends. 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 is a separate but affiliated company and subsidiary of The Charles Schwab Corporation and is not affiliated with SIDCO.

(1222-27H3)

¹ Source: etfdb.com. “ETF Issuer AUM League Table,” November 21, 2022.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221216005053/en/

Christine Underhill Hudacko

Charles Schwab

415-961-3790

Source: The Charles Schwab Corporation

FAQ

What is the significance of Schwab's announcement regarding capital gains distributions for 2022?

Schwab's announcement means that its 29 ETFs will not incur capital gains distributions for the 2022 tax year, providing tax efficiency for investors.

How much does Schwab Asset Management manage as of September 2022?

As of September 30, 2022, Schwab Asset Management managed approximately $614.1 billion on a discretionary basis.

What assets are under Schwab's ETF family?

Schwab's ETF family encompasses over $260 billion in assets across 29 ETFs.

Who is David Botset and what role does he play in Schwab Asset Management?

David Botset is the Managing Director and Head of Equity Product Management and Innovation at Schwab Asset Management.

What is the focus of Schwab Asset Management?

Schwab Asset Management focuses on delivering tax efficiency, lowering fees, and enhancing investor experiences.