Charles Schwab Offers First Exchange Traded Funds (ETFs) That Trade Commission-Free Online at Schwab.An ETF ETF See Exchange Traded Fund. ETF See exchange-traded fund (ETF). Marketplace Leader, Schwab Is Launching Eight ETFs with Low Expenses and No Online Trading Online Trading Making trades via the Internet. Notes: The use of online trading increased dramatically in the mid to late 1990's with the advent of high-speed computers and Internet connections. Stocks, bonds, options, futures, and currencies can all be traded online. Commissions for Schwab Clients SAN FRANCISCO San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden -- Charles Schwab, a marketplace leader of exchange traded funds Exchange Traded Funds (ETF) Also known as ETF. A basket of stocks similar to an index mutual fund. However, there are a number of important differences between ETFs and mutual funds. , today announced the launch of its first proprietary exchange-traded funds: eight new Schwab-managed ETFs with low operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. ratios and commission-free online trading for clients in their Schwab accounts. "Schwab has been an innovator on behalf of investors and savers for decades and has endeavored to help them become financially fit. Today, we continue this tradition by offering investors an exceptional value through low cost access to domestic and global equity markets," said Walt Bettinger, Schwab Chief Executive Officer. "Our low cost ETFs can be purchased and sold through Schwab.com commission free. This means that investors of all kinds, and especially those who wish to dollar cost average modest sums, can do so in a cost-effective way. We believe there simply isn't an easier way to buy and sell ETFs than what we're making available to all Schwab clients." Starting November 3, Charles Schwab Investment Management, Inc. (CSIM CSIM Community Sea Ice Model CSIM Cryogenic Systems Integration Model CSIM C-language-based Simulator CSIM Client Side Image Mapping ) will launch its first four ETFs - Schwab U.S. Broad Market ETF(TM), Schwab U.S. Large-Cap ETF(TM) Schwab U.S. Small-Cap ETF(TM) and Schwab International Equity ETF(TM). In December, CSIM will offer four additional ETFs - Schwab U.S. Large-Cap Growth ETF(TM), Schwab U.S. Large-Cap Value ETF(TM), Schwab International Small-Cap Equity ETF(TM) and Schwab Emerging Markets Equity ETF(TM). The new Schwab exchange traded funds have some of the lowest operating expense ratios on the market and can be bought and sold without commissions in Schwab accounts if purchased online, regardless of the number of shares traded. They are designed to be core holdings in a diversified portfolio and can be purchased in blocks as small as one share per trade. [TABLE OMITTED] Commission-free online trading of Schwab ETFs will be available to individual investors at Schwab, to the more than 6,000 independent investment advisor Investment Advisor 1. A person making investment recommendations in return for a flat fee or percentage of assets managed, known as a commission. 2. For mutual fund companies, it is the individual who has the day-to-day responsibility of investing and monitoring the cash and firms who use Schwab's custodial services through Schwab Advisor Services and through Schwab retirement accounts that permit trading of ETFs. The Schwab ETFs will be listed on NYSE Arca, and can also be traded on other exchanges. "Investors were first attracted to ETFs in the 1990s because they provided a liquid, low-cost and more tax-efficient way to invest in and trade entire segments of the market," said Peter Crawford, senior vice president at Schwab. "These ETFs will accelerate that growth and appeal to a broad range of investors: from registered investment advisors, to individual investors. Only 16% of our individual investors currently own ETFs and 43% of advisors who custody with Schwab told us this summer in our semi-annual Advisor Outlook Study, that they plan to increase their usage of ETFs in the next six months. This makes them vehicles with tremendous potential for growth." Representing an additional step in the firm's ongoing commitment to value in index investing, today's ETF announcement follows changes Schwab made on May 5, 2009 when the firm reduced expense ratios and lowered investment minimums on its equity index mutual funds. Schwab Exchange Traded Fund Exchange Traded Fund Similar to an index mutual fund, these tracking stocks trade continuously. Two popular ETFs are the Standard and Poor's depositary receipt (SPDR) launched in 1993 and the NASDAQ-100 Index Tracking Stock (QQQ) which was launched in 1999. Line-up and Launch Date [TABLE OMITTED] [TABLE OMITTED] About Charles Schwab Investment Management Founded in 1989, Charles Schwab Investment Management, Inc., a subsidiary of The Charles Schwab Corporation, is one of the nation's largest asset management companies with more than $210 billion in assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. as of September 30, 2009. It is among the country's largest money market fund managers and is the third-largest provider of retail index funds. In addition to managing Schwab Funds, CSIM is investment adviser for the institutional-style, sub-advised Laudus Fund family. CSIM currently manages 79 mutual funds, including 36 actively-managed funds, and six separate account model portfolios. About Charles Schwab The Charles Schwab Corporation (Nasdaq:SCHW SCHW Silver Chitin Handwraps (Everquest gaming) ) is a leading provider of financial services, with more than 300 offices and 7.6 million client brokerage accounts, 1.5 million corporate retirement plan participants Plan participants Employees or other beneficiaries who are eligible to receive benefits from a company's employee benefit plan. , 667,000 banking accounts, and $1.36 trillion in client assets. Through its operating subsidiaries, the company provides a full range of securities brokerage, banking, money management and financial advisory services advisory services advisory services provided to the public, in their capacity as owners and managers of animals, are an important part of veterinary science. They may be provided by government bureaux, by commercial companies who deal in pharmaceuticals or animals or animal to individual investors and independent investment advisors. Named Highest in Investor Satisfaction by J.D. Power and Associates, its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC (Simply Interactive PC) An earlier umbrella term from Microsoft and Intel for a PC that works like a home appliance. For example, it has a sealed case, uses external connectors for expansion and boots in just a couple of seconds. , www.sipc.org), and affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning Financial planning Evaluating the investing and financing options available to a firm. Planning includes attempting to make optimal decisions, projecting the consequences of these decisions for the firm in the form of a financial plan, and then comparing future performance against and investment advice; retirement plan and equity compensation plan services; referrals to independent fee-based investment Fee-Based Investment An investment account in which the advisor's compensation is based on a set percentage of the client's assets instead of on commissions. Contrast this to commission-based investment, in which the advisor makes money based on the amount of trades made or the advisors; and custodial, operational and trading support for independent, fee-based investment advisors through its Advisor Services division. The Charles Schwab Bank (member FDIC FDIC See: Federal Deposit Insurance Corporation FDIC See Federal Deposit Insurance Corporation (FDIC). ) provides banking and mortgage services and products. More information is available at www.schwab.com. Investors should consider carefully information contained in the prospectus, including investment objectives, risks, charges and expenses. You can request a prospectus by calling Schwab at 1-800-435-4000. Please read the prospectus carefully before investing. Exchange Traded Funds are subject to risks similar to those of stocks. 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. Diversification may not protect against investment loss. Schwab ETFs distributed by SEI Investments Distribution Co (SIDCO SIDCO Small Industries Development Corporation SIDCO Suburban Industrial Development Company ). SIDCO is not affiliated with Charles Schwab & Co., Inc. Schwab ETFs are managed by Charles Schwab Investment Management, Inc. (CSIM). SIDCO is not affiliated with CSIM. (2009-4808) Online trades of Schwab ETFs are commission-free at Schwab, while trades of third-party ETFs are subject to commissions. Broker-Assisted and Automated Phone trades of Schwab ETFs are subject to service charges. Direct Access trades are subject to commissions of $.003 for each share over the first 5,000. Minimum $1,000 deposit is required to open most Schwab brokerage accounts. Waivers may apply. See the Charles Schwab Pricing Guide for details. All ETFs are subject to management fees and expenses. "Dow Jones," and the names identifying the Dow Jones Indexes underlying Schwab's Domestic ETFs are trademarks of Dow Jones & Company, Inc. The Dow Jones Total Stock Market Indexes are calculated by Dow Jones Indexes and have been licensed for use for certain purposes by Charles Schwab Investment Management, Inc. "FTSE FTSE A company that specializes in index calculation. Although not part of a stock exchange, co-owners include the London Stock Exchange and the Financial Times. Notes: The FTSE is similar to Standard & Poor's in the United States. [R]", "FT-SE[R]" and "Footsie[R]" are trademarks jointly owned by the London Stock Exchange London Stock Exchange London marketplace for securities. It was formed in 1773 by a group of stockbrokers who had been doing business informally in local coffeehouses. Plc and The Financial Times Limited and are used by FTSE International Limited ("FTSE") under licence. The FTSE Global Equity Index Series is calculated by FTSE. "FTSE[R]" is a trademark of The Financial Times Limited ("FT") and the London Exchange plc (the "Exchange"), and has been licensed for use for certain purposes by Charles Schwab Investment Management, Inc. The Schwab Domestic ETFs, based on The Dow Jones Indexes, are not sponsored, endorsed, sold or promoted by Dow Jones and Dow Jones makes no representation regarding the advisability of investing in such products. [c]2009 Charles Schwab & Co., Inc. Member SIPC |
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