Key insights
- Schwab Asset Management has reduced expense ratios on four equity index ETFs, including US mid-cap, US small-cap, international small-cap, and emerging markets ETFs. This move lowers costs for investors and aligns more of Schwab's ETFs with a 3 basis point fee level. While positive for investors in these specific ETFs, the direct impact on broader US equity market direction is minimal, hence a neutral influence score.
WESTLAKE, Texas - Schwab Asset Management reduced operating expense ratios for four equity index exchange-traded funds today, according to a press release statement.
The fee reductions affect the Schwab U.S. Mid-Cap ETF (SCHM), Schwab U.S. Small-Cap ETF (SCHA), Schwab International Small-Cap Equity ETF (SCHC), and Schwab Emerging Markets Equity ETF (SCHE).
SCHM and SCHA will see their expense ratios decrease from 0.04% to 0.03%. SCHC’s expense ratio will drop from 0.08% to 0.06%, while SCHE’s will fall from 0.07% to 0.06%.
The changes bring 16 of Schwab Asset Management’s 24 market-cap weighted index equity and fixed income ETFs to a 3 basis point fee level.
"Schwab is proud to leverage our growth and efficiencies to drive down costs for investors to better help them achieve their investment goals," said Nicohl Bogan, Director of Product Strategy and Development at Schwab Asset Management.
According to the company, an investor with $10,000 in a U.S. diversified portfolio using Schwab market cap-weighted index ETFs would incur annual fund expenses of approximately $3 to $7. For portfolios including international equities, annual expenses would range from approximately $3 to $8.
Schwab Asset Management is the asset management arm of The Charles Schwab Corporation. As of March 31, 2026, the firm managed approximately $1.6 trillion on a discretionary basis and $42.5 billion on a non-discretionary basis.The parent company, with a market capitalization of $155 billion, has demonstrated strong financial performance with revenue growth of 21% over the last twelve months. According to InvestingPro analysis, Charles Schwab currently trades below its Fair Value, suggesting potential upside for investors. The platform reveals additional insights about the company’s financial health and growth prospects, including exclusive ProTips available to subscribers.
In other recent news, Charles Schwab Corporation has issued $2.25 billion in senior notes, with maturities set for 2030 and 2037. The offering includes $1 billion in notes with a 4.744% fixed-to-floating rate due in 2030 and $1.25 billion in notes with a 5.493% fixed-to-floating rate due in 2037. After accounting for deductions, the company reported net proceeds of approximately $2.236 billion. In addition, Charles Schwab has launched nearly 24/7 cryptocurrency futures trading on its thinkorswim platforms, offering products for Bitcoin, Ether, Solana, and Ripple. This marks the company’s first product available for trading around the clock. Furthermore, Charles Schwab has filed a Certificate of Elimination with the Secretary of State of Delaware, effectively removing all matters related to its Series I Preferred Stock from its charter documents. The company has also expanded its partnership with the SIFMA Foundation, committing $2.85 million to enhance investing education for students nationwide. Lastly, TD Cowen has raised its price target for Charles Schwab’s stock to $109 from $108, while maintaining a Buy rating, following the company’s investor day and the release of April metrics.
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