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Charles Schwab Debuts 3 Government Bond ETFs
August 6, 2010
SAN DIEGO (ETFguide.com) – Charles Schwab unveiled new bond ETFs that offer exposure to U.S. Treasuries with short-term, intermediate term and inflation protected securities.
The three new Schwab ETFs are the Schwab U.S. TIPS ETF (NYSEArca: SCHP), Schwab Short-Term U.S. Treasury ETF (NYSEArca: SCHO) and Schwab Intermediate-Term U.S. Treasury ETF (NYSEArca: SCHR).
Schwab’s bond ETFs will join the investment firm’s eight stock ETFs, which have around $1.4 billion in assets.
“There is growing demand from investors, traders and advisors for ETFs at a low cost,” said Peter Crawford, senior vice president at Schwab. “Fixed Income ETFs are the fastest growing segment of the ETF market. We see tremendous potential for their continued growth.”
The new offerings may be appropriate for investors looking for exposure to core fixed-income holdings in a diversified portfolio.
At the end of July there was $133.21 billion invested in U.S. listed bond ETFs, according to the National Stock Exchange.
Commission-free online trading of Schwab ETFs is available to individual investors at Schwab, to the more than 6,000 independent investment advisor firms who use Schwab’s custodial services through Schwab Advisor Services and through Schwab retirement accounts that permit trading of ETFs.
Annual expense ratios for SCHP, SCHO and SCHR are between 0.12% and 0.14%. |
