Schwab Asset Management Announces Zero Capital Gains Distributions for Schwab ETFs for 2023

Schwab Asset Management®, the asset management arm of The Charles Schwab Corporation, today announced there will be no capital gains distributions for the 2023 tax year by any of the 30 exchange-traded funds (ETFs) in the Schwab ETF family.

“Schwab ETFs delivered another year of zero capital gains, adding to a strong track record of tax efficiency,” said Nicohl Bogan, Director of Product Strategy and Development, Schwab Asset Management. “Investors continue choosing ETFs for low-cost access to a range of asset classes and strategies, and tax efficiency in a variety of market environments.”

Schwab Asset Management is the fifth largest provider of ETFs with more than $306 billion in ETF assets¹. With an average asset-weighted operating expense ratio of 8 bps, Schwab ETFs span six asset classes. Schwab Asset Management continued driving lower costs for investors in 2023 aligning operating expense ratios for all its fixed income ETFs at three basis points. The firm also launched the Schwab High Yield Bond ETF (NYSE Arca: SCYB), bringing investors simple, low-cost access to the U.S. dollar denominated high yield corporate bond market.

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 September 30, 2023, Schwab Asset Management managed approximately $928.7 billion on a discretionary basis and $30.9 billion on a non-discretionary basis. More information is available at www.schwabassetmanagement.com.

About Charles Schwab

At Charles Schwab 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 www.aboutschwab.com. Follow us on Twitter, Facebook, YouTube and LinkedIn.

Disclosures:

Investors should consider carefully information contained in the prospectus, or if available, the summary prospectus, including investment objectives, risks, charges and expenses. You can download a prospectus by visiting https://www.schwabassetmanagement.com/prospectus. 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. Unlike mutual funds, shares of ETFs are not individually redeemable directly with the ETF. Shares of an ETF are bought and sold at market price, which may be higher or lower than the net asset value (NAV).

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.

High-yield securities and unrated securities of similar credit quality (junk bonds) are subject to greater levels of credit and liquidity risks and may be more volatile than higher-rated securities. High-yield securities are considered predominately speculative with respect to the issuer’s continuing ability to make principal and interest payments.

The fund may invest in U.S.-registered, dollar-denominated bonds of non-U.S. corporations. The fund’s investments in bonds of non-U.S. issuers may involve certain risks that are greater than those associated with investments in securities of U.S. issuers. These include risks of adverse changes in foreign economic, political, regulatory and other conditions; the imposition of economic sanctions or other government restrictions; differing accounting, auditing, financial reporting and legal standards and practices; differing securities market structures; and higher transaction costs. These risks may be heightened in connection with bonds issued by non-U.S. corporations and entities in emerging markets.

“ICE®” is a registered trademark of ICE Data Indices, LLC or its affiliates and “BofA®” is a registered trademark of Bank of America Corporation licensed by Bank of America Corporation and its affiliates (“BofA”) and may not be used without BofA’s prior written approval. These trademarks have been licensed, along with the ICE BofA US Cash Pay High Yield Constrained Index (“Index”) for use by Charles Schwab Investment Management, Inc., dba Schwab Asset Management, in connection with the Schwab High Yield Bond ETF. The Schwab High Yield Bond ETF is not sponsored, endorsed, sold or promoted by ICE Data Indices, LLC, its affiliates or its Third-Party Suppliers (“ICE Data and its Suppliers”). ICE Data and its Suppliers make no representations or warranties regarding the advisability of investing in the Schwab High Yield Bond ETF. Past performance of an Index is not an indicator of or a guarantee of future results. The full ICE Data Indices, LLC disclaimer is located in the Schwab High Yield Bond ETF's statutory prospectus and/or statement of additional information located here: https://www.schwabassetmanagement.com/prospectus and such ICE Data Indices, LLC disclaimer is expressly incorporated here by reference.

Schwab Asset Management® is the dba name for Charles Schwab Investment Management, Inc., 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, and is not affiliated with SIDCO.

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¹ Source: ETF.com. ETF Brand League Table as of December 14, 2023.

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