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Our low-cost index philosophy

Expenses matter. Just like consistent performance, every basis point counts in helping investors achieve their investment goals. That's why we're focused on offering index products at competitive costs. We are committed to operating our business through clients' eyes, sharing the benefits of our scale and efficiency with investors and the financial professionals who serve them whenever and wherever we can.

Your partner for low-cost index products

ETFs

As one of the largest and fastest-growing market cap index ETF families, we offer broad market access and diverse investment options—with some of the lowest expenses in the industry.

Compare to Vanguard and iShares

0.05%

asset-weighted average total expense ratio1 

Mutual funds

While some firms offer their best pricing only to big institutions, we offer all investors access to the same low-cost market cap index mutual funds—with no minimums.

See how Schwab Market Cap Index Mutual Funds compare

0.03%

asset-weighted average total expense ratio1

Target index funds

To keep expenses low, we construct our Schwab Target Index Funds with ETFs.

See how Schwab Target Index Funds compare

0.08%

net expense ratio with no minimum investment2 (the funds have a gross expense ratio of up to 0.13%)

Lending for the benefit of shareholders

Our investor-first philosophy also drives our approach to securities lending. We do not seek to profit from securities lending as a means to justify lower expenses. For the funds that participate in securities lending, we use third-party lending agents. All securities-lending revenue (net of program costs and expenses) is returned to the funds for the benefit of shareholders, which may enhance fund performance.

The impact of expenses

Over time, a few basis points can add up to real costs that erode the value of an investment. Use our fee impact simulator to see how costs can affect a portfolio over time.

See the impact

30+ years of experience in investment management

We have a long history and deep understanding of index investing.

$1T+

Trillion in assets under management3

3rd

largest provider of index mutual funds4

5th

largest provider of ETFs4

Break away from high costs

Explore our low-cost index-based products.

ETFs

Mutual funds

Target index funds

1. Source: Schwab Asset Management, as of December 31, 2024, Expense ratios are subject to change. The asset-weighted average total expense ratio is a measure of the average annual cost of investing in a particular category of funds and takes into account the expense ratios of individual funds within the category and weights them based on their respective assets under management (AUM). The asset-weighted average total expense ratio is used because it can provide a more accurate representation of the average costs incurred by investors in a particular fund category relative to other averages since it takes into account the funds' relative sizes. 

2. As of the most recent prospectus, the investment adviser and its affiliates have agreed to limit the total annual fund operating expenses (including acquired fund fees (AFFE), but excluding taxes and certain non-routine expenses) of the funds to 0.08% for so long as the investment adviser serves as the adviser to the funds. This agreement may only be amended or terminated with the approval of the funds’ Board of Trustees. AFFE reflect fees and expenses incurred indirectly by the funds through their investment in the underlying funds. 

3. Source: Schwab Asset Management, as of December 31, 2024.

4. Source: Lipper. Rankings based on assets under management (AUM) as of December 31, 2024.

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 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. 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).

Target date funds are built for investors who expect to start gradual withdrawals of fund assets on the target date to begin covering expenses in retirement. The values of the target date funds will fluctuate up to and after the target date. There is no guarantee the funds will provide adequate income at or through retirement.

Target date funds’ asset allocations are subject to change over time in accordance with each fund’s offering document. The funds are subject to market volatility and risks associated with the underlying investments. Risks include exposure to international and emerging markets, small company and sector equity securities, and fixed income securities subject to changes in inflation, market valuations, liquidity, prepayments, and early redemption.

Target date fund asset allocations are subject to change over time in accordance with each fund’s prospectus. The advisor reserves the right to modify the glide path from time to time should circumstances warrant.

​The Funds are subject to market volatility and risks associated with the underlying investments. Risks include exposure to international and emerging markets; small company and sector equity securities; and fixed income securities subject to changes in inflation, interest rates, market valuations, liquidity, prepayments, and early redemption.

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Investment and Insurance Products Are: Not FDIC Insured • Not Insured by Any Federal Government Agency • Not a Deposit or Other Obligation of, or Guaranteed by, the Bank or Any of Its Affiliates • Subject to Investment Risks, Including Possible Loss of Principal Amount Invested

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