The Schwab Mortgage-Backed Securities ETF (SMBS) Starts Trading
19 November 2024 - 3:00PM
Business Wire
Schwab Asset Management®, the asset management arm of The
Charles Schwab Corporation, announced the Schwab Mortgage-Backed
Securities ETF (NYSE Arca: SMBS) began trading today.
With an expense ratio of 0.03%, the Schwab Mortgage-Backed
Securities ETF is priced in line with the lowest-priced peer ETFs
based on the U.S. Mortgage Lipper category1. The ETF provides
access to investment-grade mortgage-backed securities issued and/or
guaranteed by U.S. government agencies.
The goal of the Schwab Mortgage-Backed Securities ETF is to
track as closely as possible, before fees and expenses, the total
return of the Bloomberg US MBS Float Adjusted Total Return Index.
The ETF invests in mortgage-backed pass-through securities
guaranteed by the Government National Mortgage Association (Ginnie
Mae), the Federal National Mortgage Association (Fannie Mae), and
the Federal Home Loan Mortgage Corporation (Freddie Mac) that are
backed by pools of mortgages.
The launch of the Schwab Mortgage-Backed Securities ETF occurs
when Schwab Asset Management is celebrating 15 years since entering
the ETF space. Since that time, Schwab Asset Management has become
the fifth-largest provider of ETFs2 and is known for its commitment
to low costs and taking a thoughtful approach to growing its
lineup. To learn more visit
www.schwabassetmanagement.com/about.
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, 2024, Schwab Asset Management managed
approximately $1.3 trillion on a discretionary basis and $40.7
billion on a non-discretionary basis.
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/X, Facebook, 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 obtain
a prospectus, or if available, a summary 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 ETF 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.
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.
Mortgage-backed securities (MBS) may be more sensitive to
interest rate changes than other fixed income investments. They are
subject to extension risk, where borrowers extend the duration of
their mortgages as interest rates rise, and prepayment risk, where
borrowers pay off their mortgages earlier as interest rates fall.
These risks may reduce returns.
Certain U.S. government securities that the fund invests in are
not backed by the full faith and credit of the U.S. government,
which means they are neither issued nor guaranteed by the U.S.
Treasury. There can be no assurance that the U.S. government will
provide financial support to securities of its agencies and
instrumentalities if it is not obligated to do so under law. Also,
any government guarantees on securities the fund owns do not extend
to the shares of the fund itself.
Schwab Asset Management® is the dba name for Charles Schwab
Investment Management, Inc., the investment adviser for Schwab
Funds, Schwab ETFs, and separately managed account strategies.
Schwab Funds are distributed by Charles Schwab & Co, Inc.
(Schwab), Member SIPC. Schwab ETFs are distributed by SEI
Investments Distribution Co. (SIDCO). Schwab Asset Management and
Schwab are separate but affiliated companies and subsidiaries of
The Charles Schwab Corporation, and are not affiliated with
SIDCO.
__________________ 1 Source: Lipper, September 30, 2024. 2
Source: ETF.com, ETF League Table, November 8, 2024.
1124-5531
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Christine Underhill Charles Schwab 415-961-3790
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