Schwab Asset Management Reduces Fees on Two Fixed Income ETFs, Pricing Its Entire Fixed Income Lineup at Three Basis Points

BY Business Wire | CORPORATE | 09/25/23 08:00 AM EDT

WESTLAKE, Texas--(BUSINESS WIRE)-- Schwab Asset Management?, the asset management arm of The Charles Schwab Corporation (SCHW) and the fifth-largest provider1 of ETFs, today announced the reduction of operating expense ratios for the Schwab High Yield Bond ETF (SCYB) and the Schwab U.S. TIPS ETF (SCHP), bringing the fees for Schwab Asset Management?s entire lineup of fixed income ETFs to only three basis points. All of Schwab Asset Management?s fixed income ETFs are now among the lowest-priced ETFs in each of their respective Morningstar categories. The price changes go into effect September 25, 2023.

?At Schwab Asset Management we are proud to continue our legacy of driving cost savings for investors with a focus on what is most meaningful to our clients,? said Nicohl Bogan, Director of Product Strategy and Development, Schwab Asset Management. ?Fixed income has been in the spotlight for investors in a higher interest rate environment. We have seized the opportunity to expand our fixed income offerings, recently launching high yield and municipal bond ETFs, while also helping investors save on fees.?

Schwab Fixed Income ETF Expense Ratios

Name of Fund (Ticker)

($millions) as
of 9/22/2023

Operating Expense
Ratio Prior to 9/25/23

Operating Expense
Ratio After 9/25/23

Schwab High Yield Bond ETF (SCYB)








Schwab 1-5 Year Corporate Bond ETF (SCHJ)




Schwab 5-10 Year Corporate Bond ETF (SCHI)




Schwab Intermediate-Term U.S. Treasury ETF (SCHR)




Schwab Long-Term U.S. Treasury ETF (SCHQ)




Schwab Municipal Bond ETF (SCMB)




Schwab Short-Term U.S. Treasury ETF (SCHO)




Schwab U.S. Aggregate Bond ETF (SCHZ)




To learn more about Schwab Asset Management?s entire lineup of ETFs, visit

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 June 30, 2023, Schwab Asset Management managed approximately $895.9 billion on a discretionary basis and $33.5 billion on a non-discretionary basis. More information is available at

About Charles Schwab (SCHW)

At Charles Schwab (SCHW) 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 Follow us on Twitter, Facebook, YouTube and LinkedIn.


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 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. Shares of ETFs are not individually redeemable directly with the ETF. Shares 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.

Schwab Asset Management? is the dba name for Charles Schwab Investment Management, Inc. (CSIM), 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 (SCHW) and is not affiliated with SIDCO.


1 Source: VettaFi, ETF Issuer AUM League Table, September 18, 2023.

Source: The Charles Schwab Corporation (SCHW)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.