Schwab Asset Management to Launch the Schwab Mortgage-Backed Securities ETF
Schwab Asset Management announced the launch of the Schwab Mortgage-Backed Securities ETF (NYSE Arca: SMBS), expected to begin trading around November 19. With a competitive 0.03% expense ratio, the ETF will provide access to investment-grade mortgage-backed securities guaranteed by U.S. government agencies. The fund aims to track the Bloomberg US MBS Float Adjusted Total Return Index and invests in securities backed by Ginnie Mae, Fannie Mae, and Freddie Mac. This launch marks Schwab Asset Management's position as the fifth-largest ETF provider, celebrating 15 years in the ETF space.
Schwab Asset Management ha annunciato il lancio del Schwab Mortgage-Backed Securities ETF (NYSE Arca: SMBS), previsto per iniziare le contrattazioni intorno al 19 novembre. Con un 0,03% di spese, l'ETF offrirà accesso a titoli garantiti da mutui di qualità investimentale garantiti da agenzie governative degli Stati Uniti. Il fondo mira a seguire l'Indice Bloomberg US MBS Float Adjusted Total Return e investe in titoli garantiti da Ginnie Mae, Fannie Mae e Freddie Mac. Questo lancio segna la posizione di Schwab Asset Management come quinto fornitore di ETF più grande, celebrando 15 anni nel settore degli ETF.
Schwab Asset Management anunció el lanzamiento del Schwab Mortgage-Backed Securities ETF (NYSE Arca: SMBS), que se espera comience a cotizar alrededor del 19 de noviembre. Con una tasa de gasto del 0,03%, el ETF proporcionará acceso a valores respaldados por hipotecas de grado de inversión garantizados por agencias gubernamentales de EE. UU. El fondo tiene como objetivo rastrear el Índice de Rendimiento Total Ajustado por Flotación de Bloomberg US MBS e invierte en valores respaldados por Ginnie Mae, Fannie Mae y Freddie Mac. Este lanzamiento marca la posición de Schwab Asset Management como el quinto proveedor de ETF más grande, celebrando 15 años en el sector de ETF.
슈왑 자산운용은 슈왑 모기지 담보 증권 ETF (NYSE Arca: SMBS)의 출범을 발표했으며, 11월 19일경 거래를 시작할 것으로 예상됩니다. 0.03%의 경쟁력 있는 비용 비율을 통해 이 ETF는 미국 정부 기관이 보증하는 투자 등급 모기지 담보 증권에 접근할 수 있게 합니다. 이 기금은 블룸버그 미국 MBS 플로트 조정 총 수익 지수를 추적하는 것을 목표로 하며, 지니 메이, 패니 메이 및 프레디 맥이 보증한 증권에 투자합니다. 이번 출범은 슈왑 자산운용이 다섯 번째로 큰 ETF 제공업체로 자리매김하고 있으며, ETF 분야에서 15년을 기념하고 있습니다.
Schwab Asset Management a annoncé le lancement du Schwab Mortgage-Backed Securities ETF (NYSE Arca: SMBS), qui devrait commencer à être négocié autour du 19 novembre. Avec un taux de dépenses de 0,03%, l'ETF offrira un accès à des titres garantis par des hypothèques de qualité investissement garantis par des agences gouvernementales américaines. Le fonds vise à suivre l'indice Bloomberg US MBS Float Adjusted Total Return et investit dans des titres garantis par Ginnie Mae, Fannie Mae et Freddie Mac. Ce lancement marque la position de Schwab Asset Management en tant que cinquième plus grand fournisseur d'ETF, célébrant 15 ans dans le domaine des ETF.
Schwab Asset Management hat die Einführung des Schwab Mortgage-Backed Securities ETF (NYSE Arca: SMBS) angekündigt, der voraussichtlich um den 19. November an den Handel gehen wird. Mit einem Ausgabenverhältnis von 0,03% bietet der ETF Zugang zu investmentgrad-Mortgage-Backed Securities, die von US-Regierungsbehörden garantiert werden. Der Fonds hat zum Ziel, den Bloomberg US MBS Float Adjusted Total Return Index nachzubilden und investiert in von Ginnie Mae, Fannie Mae und Freddie Mac garantierte Wertpapiere. Dieser Launch markiert die Position von Schwab Asset Management als fünftgrößter ETF-Anbieter und feiert 15 Jahre im ETF-Sektor.
- Competitive 0.03% expense ratio, matching the lowest-priced peer ETFs
- Investment in government-guaranteed securities, reducing default risk
- Expansion of product lineup by fifth-largest ETF provider
- None.
Insights
The launch of Schwab's new mortgage-backed securities ETF (SMBS) represents a significant market development with an ultra-competitive
The product's tracking of the Bloomberg US MBS Float Adjusted Total Return Index provides broad exposure to the
With an expense ratio of
“It’s been a notable period for the fixed income market, and at Schwab Asset Management we’re deeply committed to helping clients with their fixed income investing needs. We’re excited to introduce the Schwab Mortgage-Backed Securities ETF as the latest example of that effort,” said Nicohl Bogan, Head of Passive Product Management & Innovation, Schwab Asset Management. “This launch is a prime example of how we are leveraging our scale and deep capital markets expertise to bring investors and advisors competitively priced offerings that provide core market exposures for well-diversified portfolios.”
The goal of the Schwab Mortgage-Backed Securities ETF is to track as closely as possible, before fees and expenses, the Bloomberg US MBS Float Adjusted Total Return Index. The ETF invests in mortgage-backed pass-through securities guaranteed by the Government National Mortgage Association (Ginnie Mae), the Federal National Mortgage Association (Fannie Mae), and the Federal Home Loan Mortgage Corporation (Freddie Mac) that are backed by pools of mortgages.
The launch of the Schwab Mortgage-Backed Securities ETF occurs when Schwab Asset Management is celebrating 15 years since entering the ETF space. Since that time, Schwab Asset Management has become the fifth-largest provider of ETFs2 and is known for its commitment to low costs and taking a thoughtful approach to growing its lineup. To learn more visit www.schwabassetmanagement.com/about.
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, 2024, Schwab Asset Management managed approximately
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/X, Facebook, 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 https://www.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).
Diversification and asset allocation strategies do not ensure a profit and do not protect against losses in declining markets.
Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed-income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors.
Mortgage-backed securities (MBS) may be more sensitive to interest rate changes than other fixed income investments. They are subject to extension risk, where borrowers extend the duration of their mortgages as interest rates rise, and prepayment risk, where borrowers pay off their mortgages earlier as interest rates fall. These risks may reduce returns.
Certain
Schwab Asset Management® is the dba name for Charles Schwab Investment Management, Inc., the investment adviser for Schwab Funds, Schwab ETFs, and separately managed account strategies. Schwab Funds are distributed by Charles Schwab & Co, Inc. (Schwab), Member SIPC. Schwab ETFs are distributed by SEI Investments Distribution Co. (SIDCO). Schwab Asset Management and Schwab are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation, and are not affiliated with SIDCO.
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1 Source: Lipper, September 30, 2024.
2 Source: ETF.com, ETF League Table, October 15, 2024.
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Christine Underhill
Charles Schwab
415-961-3790
Source: The Charles Schwab Corporation
FAQ
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