Active products and solutions
Actively managed equity and fixed income mutual funds and ETFs offer core or complementary solutions for an investor's portfolio.
Happy Anniversary, Schwab Ariel ESG ETF!
Celebrating 1 year of helping advisors and clients pursue their ESG investment goals.
On November 16, 2021, Schwab and Ariel Investments, LLC, the first African American-owned investment management firm in the U.S., teamed up to launch the Schwab Ariel ESG ETF (SAEF). The fund combines Schwab’s ETF expertise with Ariel’s robust proprietary Environment, Social, and Governance (ESG) investment process.
What we offer
We provide active equity and fixed income funds managed by Schwab Asset Management that can serve as core or complementary components of investor portfolios. Additionally, we offer investors access to a select group of active managers through our sub-advised funds and the Schwab Ariel ESG ETF.
Our approach to Schwab Active Equity Funds
We believe in providing a range of active management strategies that address the nuances across equity classes to help investors achieve their objectives. With an active, high-conviction investing strategy, we can use differentiated and rigorous data-driven research to identify opportunities in U.S. Large Cap markets. Within less-researched and inefficient segments of the equity markets, we take a systematic approach that blends quantitative and qualitative insights for portfolio construction that to helps deliver the desired outcome.
Schwab Active Equity differentiators
- A disciplined investment process that integrates quantitative and qualitative research and analysis through a bottom-up approach to stock selection.
- A focus on generating consistent, risk-adjusted excess return in order to provide shareholders with long-term value.
- International, Specialty, and U.S. Small Funds’ systematic (quantitative + qualitative) approach that blends multiple stock characteristics (factors), which lessen reliance on a single component.
- U.S. Large Cap Funds include portfolio managers who oversee ThomasPartners® Strategies via a high-conviction approach that leverages fundamental research expertise.
We offer a select set of sub-advised funds to complement a portfolio’s diversification strategy. These funds are overseen by a knowledgeable and experienced management team who consider the specific objectives of the investments they manage.
Schwab Ariel ESG ETF
The Schwab Ariel ESG ETF provides investors with access to a semi-transparent/non-transparent actively managed ETF that incorporates environmental, social, and governance investment criteria from a fund manager with 40 years of ESG-focused management expertise.
This fund is different from traditional ETFs.
What makes the Schwab Ariel ESG ETF different from traditional ETFs?
Traditional ETFs tell the public what assets they hold each day. This fund will not. This may create additional risks for your investment. For example:
- You may have to pay more money to trade the fund’s shares. This fund will provide less information to traders, who tend to charge more for trades when they have less information.
- The price you pay to buy fund shares on an exchange may not match the value of the fund’s portfolio. The same is true when you sell shares. These price differences may be greater for this fund compared to other ETFs because it provides less information to traders.
- These additional risks may be even greater in bad or uncertain market conditions.
- The ETF will publish on its website each day a “Proxy Portfolio” designed to help trading in shares of the ETF. While the Proxy Portfolio includes some of the ETF’s holdings, it is not the ETF’s actual portfolio.
The differences between this fund and other ETFs may also have advantages. By keeping certain information about the fund undisclosed, this fund may face less risk that other traders can predict or replicate its investment strategy. This may improve the fund’s performance. If other traders are able to replicate or predict the fund’s investment strategy, however, this may hurt the fund’s performance.
For additional information regarding the unique attributes and risks of the fund, see Proxy Portfolio Risk, Premium/Discount Risk, Trading Halt Risk, Authorized Participant Concentration Risk, Tracking Error Risk and Shares of the Fund May Trade at Prices Other Than NAV in the Principal Risks and Proxy Portfolio and Proxy Overlap sections of the prospectus and/or the Statement of Additional Information.
Schwab Select Large Cap Growth Fund*
The Schwab Select Large Cap Growth Fund offers a diversified, multi-manager approach to investing in U.S. large cap growth stocks. The Fund utilizes two sub-advisors with complementary investment styles to offer enhanced diversification opportunities in the convenience of a single fund and benefits from day-to-day management and ongoing oversight of Schwab Asset Management.
Schwab International Opportunities Fund
The Schwab International Opportunities Fund follows a multi-manager strategy that combines different investment styles and strategies in one fund, in an effort to reduce investment risk through diversification. The Schwab International Opportunities Fund benefits from day-to-day management and ongoing oversight of Schwab Asset Management.
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Schwab Tax-Free Bond Funds
Actively managed funds that primarily invest in investment-grade municipal securities, led by experienced portfolio managers and benefiting from extensive credit research. The funds actively seek to maximize current income within the limits of the fund’s credit and average maturity standards by applying proprietary investment techniques and risk analyses in making investment decisions for the funds.
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