Schwab Asset Management Reduces Fees on Four Equity Index ETFs

Key Terms

operating expense ratio financial

The operating expense ratio measures how much of a company’s revenue is eaten by the costs of running the business, calculated as operating expenses divided by revenue. For investors it shows how efficiently a company turns sales into profit—like comparing the share of your paycheck spent on rent and bills—so a lower ratio generally means more cash available for growth, dividends or debt reduction.

market-cap weighted financial

Market-cap weighted describes an index or portfolio where each company’s weight is based on its total stock market value (share price multiplied by number of shares). Like a choir where louder singers dominate, bigger companies have more influence on performance, so funds that track such indices concentrate returns and risks in large firms and can be less diversified than equal-weight alternatives.

basis points financial

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

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Key Takeaways:

• Schwab is cutting fees on SCHM, SCHA, SCHC, and SCHE, effective June 11, 2026.
• A large share of Schwab’s core market-cap weighted ETF lineup is now priced at just 3 bps.
• The fee cuts make diversified U.S. and global ETF portfolios even more affordable for investors.

WESTLAKE, Texas--(BUSINESS WIRE)-- Schwab Asset Management®, the asset management arm of The Charles Schwab Corporation and the fifth-largest provider¹ of ETFs, today announced the reduction of operating expense ratios for four equity index ETFs: 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). The fee reductions are effective June 11, 2026. Out of Schwab Asset Management’s 24 market-cap weighted, index equity and fixed income ETFs, 16 are now offered at only 3 basis points (bps).

“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, Schwab Asset Management. “With today’s fee reductions, building a diversified, index-based portfolio is more cost-effective than ever before with Schwab index ETFs.”

Schwab Equity Index ETF Expense Ratio Changes

Name of Fund (Ticker)	Operating Expense Ratio Prior to June 11	Operating Expense Ratio After June 11
Schwab U.S. Mid-Cap ETF (SCHM)	0.04%	0.03%
Schwab U.S. Small-Cap ETF (SCHA)	0.04%	0.03%
Schwab International Small-Cap Equity ETF (SCHC)	0.08%	0.06%
Schwab Emerging Markets Equity ETF (SCHE)	0.07%	0.06%

With these fee reductions, an investor can construct a U.S. diversified portfolio that includes large-, mid- and small-cap equities; treasury, corporate and municipal bonds; and diversifying asset categories like REITs, utilizing Schwab market cap-weighted index ETFs, that have expense ratios ranging from 3 bps to 7 bps. In nominal terms, that means an investor with $10,000 would incur annual fund expenses of approximately $3 to $7, depending on the applicable expense ratio².

Extending that portfolio to include international equities such as developed markets, emerging markets and international dividend equities, expense ratios range now from 3 bps to 8 bps. Thinking of that same investor with $10,000, the annual fund expenses would be approximately $3 to $8.³

To learn more about Schwab Asset Management’s entire lineup of ETFs, visit www.schwabassetmanagement.com.

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 March 31, 2026, Schwab Asset Management managed approximately $1.6 trillion on a discretionary basis and $42.5 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 X, 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 view and download a prospectus by visiting https://www.schwabassetmanagement.com/prospectus. Please read it carefully before investing.

Investing involves risk, including loss of principal. The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.

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. Shares of ETFs are not individually redeemable directly with the ETF. Shares are bought and sold at market price, which may be higher or lower than the net asset value (NAV).

Diversification and asset allocation strategies do not ensure a profit and do not protect against losses in declining markets.

Schwab Asset Management® is the dba name for Charles Schwab Investment Management, Inc. (CSIM), 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: Lipper, March 31, 2026.
² Source: Schwab Asset Management. Calculated using the Schwab U.S. cap-weighted index ETF with the lowest operating expense ratio at 3 bps and the Schwab U.S. cap-weighted index ETF with the highest operating expense ratio at 7 bps at an annual rate on a $10,000 initial investment portfolio. Expense ratios are as of June 11, 2026.
³ Source: Schwab Asset Management. Calculated using the Schwab international cap-weighted index ETF with the lowest operating expense ratio at 3 bps and the Schwab international cap-weighted index ETF with the highest operating expense ratio at 8 bps at an annual rate on a $10,000 initial investment portfolio. Expense ratios are as of June 11, 2026.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260611422634/en/

Christine Underhill
Charles Schwab
415-961-3790

Source: The Charles Schwab Corporation