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Schwab Tackles ‘Gaps’ in Bond ETF Business With Three New Funds

Charles Schwab is planning to start three new products focused on corporate bonds and Treasuries, almost doubling the number of debt exchange-traded funds it offers.

By Rachel Evans

(Bloomberg) -- Charles Schwab Corp. is stepping up its offerings of fixed-income ETFs.

The San Francisco-based broker’s asset management arm is planning to start three new products focused on corporate bonds and Treasuries, almost doubling the number of debt exchange-traded funds it offers, regulatory filings show.

The decision marks a shift for Charles Schwab Investment Management, which has largely ridden its equity-fund offerings to become the fifth-largest ETF issuer in the U.S.More than 84% of the $146 billion in Schwab ETFs is invested in stocks. But with global bond ETFs surpassing $1 trillion this year, debt funds are increasingly important for further growth.

The firm is keen to fill “gaps” in its fixed-income lineup, CSIM’s Jonathan de St. Paer said earlier this year before taking over as chief executive in April.

The planned funds and their trading tickers are:

  • Schwab Short-Term Corporate Bond ETF (SCHJ)
  • Schwab Intermediate-Term Corporate Bond ETF (SCHI)
  • Schwab Long-Term U.S. Treasury ETF (SCHQ)

The firm didn’t disclose the intended management fees.

To contact the reporter on this story:
Rachel Evans in New York at [email protected]

To contact the editors responsible for this story:
Jeremy Herron at [email protected]
Brendan Walsh

TAGS: Fixed Income
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