Schwab to Launch the Schwab Ultra-Short Income ETF
Schwab Asset Management, part of The Charles Schwab , is launching its first actively managed fixed income ETF, the Schwab Ultra-Short Income ETF (NYSE Arca: SCUS). Set to begin trading around August 13, this ETF offers:
- Access to U.S. dollar-denominated investment-grade, short-term bonds
- An expense ratio of 0.14%, below the industry average of 0.25%
- A focus on current income with capital preservation and liquidity
- Portfolio duration of one year or less
This launch marks Schwab's 10th bond ETF and 31st ETF overall, solidifying its position as the fifth-largest ETF provider. The company aims to offer among the lowest-cost bond ETFs in the industry.
Schwab Asset Management, parte di The Charles Schwab, lancia il suo primo ETF a gestione attiva a reddito fisso, il Schwab Ultra-Short Income ETF (NYSE Arca: SCUS). La negoziazione inizierà intorno al 13 agosto e questo ETF offre:
- Accesso a obbligazioni a breve termine di alta qualità denominate in dollari statunitensi
- Un rapporto di spesa del 0,14%, inferiore alla media del settore del 0,25%
- Un focus sul reddito attuale, con preservazione del capitale e liquidità
- Durata del portafoglio di un anno o meno
Questo lancio segna il 10° ETF obbligazionario di Schwab e il 31° ETF complessivo, consolidando la sua posizione come il quinto fornitore di ETF più grande. L'azienda punta a offrire ETF obbligazionari tra i più convenienti del settore.
Schwab Asset Management, que forma parte de The Charles Schwab, está lanzando su primer ETF de renta fija gestionado activamente, el Schwab Ultra-Short Income ETF (NYSE Arca: SCUS). Se espera que comience a cotizar alrededor del 13 de agosto y este ETF ofrece:
- Acceso a bonos de grado de inversión a corto plazo denominados en dólares estadounidenses
- Un ratio de gastos de 0.14%, por debajo de la media de la industria del 0.25%
- Un enfoque en el ingreso actual con preservación de capital y liquidez
- Duración de la cartera de un año o menos
Este lanzamiento marca el 10° ETF de bonos de Schwab y el 31° ETF en total, consolidando su posición como el quinto proveedor de ETF más grande. La empresa tiene como objetivo ofrecer ETF de bonos con costos entre los más bajos de la industria.
슈왑 자산 관리(Schwab Asset Management)는 찰스 슈왑(The Charles Schwab)의 일부로서 첫 번째 능동적으로 관리되는 고정 수익 ETF인 슈왑 울트라 쇼트 인컴 ETF(Schwab Ultra-Short Income ETF, NYSE Arca: SCUS)를 출시합니다. 8월 13일 경부터 거래가 시작될 예정이며, 이 ETF는 다음과 같은 혜택을 제공합니다:
- 미국 달러로 표시된 투자 등급의 단기 채권에 대한 접근
- 업계 평균 0.25%보다 낮은 0.14%의 비용 비율
- 자본 보존과 유동성에 중점을 둔 현재 수익
- 포트폴리오 지속 기간 1년 이하
이번 출시는 슈왑의 10번째 채권 ETF이자 31번째 ETF 전체로, 다섯 번째로 큰 ETF 제공업체로서의 입지를 확고히 하고 있습니다. 이 회사는 업계에서 가장 저렴한 비용의 채권 ETF를 제공하는 것을 목표로 하고 있습니다.
Schwab Asset Management, qui fait partie de The Charles Schwab, lance son premier ETF à revenu fixe géré activement, le Schwab Ultra-Short Income ETF (NYSE Arca: SCUS). Les transactions devraient commencer autour du 13 août, et cet ETF offre :
- Un accès à des obligations à court terme de qualité d'investissement libellées en dollars américains
- Un ratio des frais de 0,14%, inférieur à la moyenne du secteur de 0,25%
- Un accent sur le revenu actuel avec préservation du capital et liquidité
- Une durée de portefeuille d'un an ou moins
Ce lancement marque le 10ème ETF obligataire de Schwab et le 31ème ETF au total, consolidant ainsi sa position en tant que cinquième plus grand fournisseur d'ETF. L'entreprise vise à offrir certains des ETF obligataires les moins coûteux de l'industrie.
Schwab Asset Management, ein Teil von The Charles Schwab, bringt sein erstes aktiv verwaltetes Renten-ETF auf den Markt, das Schwab Ultra-Short Income ETF (NYSE Arca: SCUS). Der Handel soll ab dem 13. August beginnen, und dieses ETF bietet:
- Zugang zu in US-Dollar denominierten, erstklassigen, kurzfristigen Anleihen
- Eine Gesamtkostenquote von 0,14%, unter dem Branchendurchschnitt von 0,25%
- Einen Schwerpunkt auf laufendem Einkommen mit Kapitalerhalt und Liquidität
- Eine Portfolio-Dauer von einem Jahr oder weniger
Dieser Launch markiert das 10. Anleihe-ETF von Schwab und das 31. ETF insgesamt, was seine Position als fünftgrößter ETF-Anbieter festigt. Das Unternehmen zielt darauf ab, eines der kostengünstigsten Anleihe-ETFs der Branche anzubieten.
- Launch of Schwab's first actively managed fixed income ETF (SCUS)
- Lower expense ratio (0.14%) compared to industry average (0.25%)
- Expansion of Schwab's ETF lineup, now offering 10 bond ETFs and 31 ETFs total
- Schwab's position as the fifth-largest ETF provider
- None.
Insights
The launch of Schwab's Ultra-Short Income ETF (SCUS) marks a significant development in the ETF landscape, particularly for income-seeking investors. With an expense ratio of
Key points to consider:
- Active management: As Schwab's first actively managed fixed income ETF, SCUS offers the potential for enhanced returns through active security selection and duration management.
- Portfolio diversification: The ETF's focus on investment-grade, short-term bonds provides a low-risk option for portfolio diversification, potentially serving as a cash alternative or a conservative fixed income allocation.
- Liquidity and capital preservation: With a target duration of one year or less, SCUS aims to offer liquidity while preserving capital, making it an attractive option for risk-averse investors or those seeking to park cash temporarily.
From an investor's perspective, SCUS could be an appealing option in the current market environment, where interest rates are expected to remain elevated. The ETF's ultra-short duration strategy may help mitigate interest rate risk while potentially offering higher yields than money market funds.
However, it's important to note that while actively managed ETFs can potentially outperform their passive counterparts, they also carry the risk of underperformance. Investors should closely monitor the fund's performance and management decisions over time to ensure it meets their investment objectives.
The introduction of SCUS by Schwab Asset Management is a strategic move that aligns with current market trends and investor demands. Here's why this launch is significant:
- Growing demand for income: With interest rates at multi-year highs, there's increased investor appetite for income-producing investments. SCUS caters to this demand while offering the benefits of ETF structure.
- ETF market expansion: As the fifth-largest ETF provider, Schwab is expanding its offerings to capture a larger share of the rapidly growing ETF market. This move into actively managed fixed income ETFs could help Schwab compete more effectively with larger rivals.
- Cost competition: The
0.14% expense ratio undercuts the industry average, continuing the trend of fee compression in the ETF space. This could put pressure on competitors to lower their fees, benefiting investors overall.
Market implications:
1. Increased competition: SCUS's launch may spur other major ETF providers to introduce similar products or reduce fees on existing offerings.
2. Potential market share shifts: If successful, SCUS could attract assets from both traditional mutual funds and competing ETFs, potentially altering market share dynamics in the ultra-short bond category.
3. Investor education: The introduction of an actively managed fixed income ETF by a major provider like Schwab could help increase investor awareness and acceptance of this relatively newer ETF category.
While the success of SCUS remains to be seen, its launch represents a significant development in the evolving ETF landscape, potentially influencing product development and pricing strategies across the industry.
Schwab Asset Management adds first actively managed fixed income ETF to its lineup
With an expense ratio of
“The Schwab Ultra-Short Income ETF is a notable addition to the Schwab family of ETFs as investors continue to seek out cost-effective, income-producing strategies to help diversify their portfolios,” said David Lafferty, Director, Product Strategy & Development, Schwab Asset Management. “With SCUS, the first actively managed offering in our fixed income ETF lineup, we believe investors will benefit from our extensive credit research and portfolio management teams, along with the inherent features of an ETF.”
The goal of the Schwab Ultra-Short Income ETF is to seek current income consistent with capital preservation while maintaining liquidity. The ETF invests in investment grade, short-term,
The fifth-largest provider of ETFs2, Schwab Asset Management has more than a decade of experience managing ETFs with a robust capital markets team. The Schwab Ultra-Short Income ETF is Schwab Asset Management’s tenth bond ETF and the 31st Schwab ETF overall. Schwab bond ETFs seek to be among the lowest cost across the industry’s leading ETF providers.
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 March 31, 2024, Schwab Asset Management managed approximately
More information is available at www.aboutschwab.com. Follow us on Twitter/X, Facebook, and LinkedIn.
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 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.
Schwab Ultra-Short Income ETF is an actively managed exchange traded fund and therefore does not seek to replicate the performance of any specific index. The fund may have a higher degree of portfolio turnover than funds that seek to replicate the performance of an index.
Schwab Ultra-Short Income ETF is not a money market fund and does not seek to maintain a stable net asset value of
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.
An actively managed fund is subject to the risk that its investment adviser and/or subadviser will select investments or allocate assets in a manner that could cause the fund to underperform or otherwise not meet its investment objective.
The fund may invest in
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: Morningstar data as of June 30, 2024. Data universe is the actively managed ETFs in the Ultrashort Bond category.
2 Source: VettaFi, ETF Issuer League of Table, July 1, 2024.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240730882090/en/
Christine Underhill
Charles Schwab
415-961-3790
Source: The Charles Schwab Corporation
FAQ
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