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ESG investing with Schwab

Boats on the water

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.

SAEF
Schwab Ariel ESG ETF

This fund is 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 secret, this fund may face less risk that other traders can predict or copy its investment strategy. This may improve the fund’s performance. If other traders are able to copy 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.

Environment, Social and Governance (ESG) Investing

The events of the last few years have driven greater attention toward investments that address renewable energy, human capital, corporate governance and more. Learn more about how the ESG space is evolving and what to consider for a portfolio.

Read transcript

ESG Insights

Portfolio Management

ESG can help your investments align with your values.
Portfolio Management

It’s natural to ask if there’s a downside to ESG.
Portfolio Management

How to explore or get started with ESG, at your own pace.

ETF Know:How

For more educational information on semi-transparent, also known as non-transparent ETFs, here are some educational articles:

Consider how semi-transparent ETFs can help you pursue outperformance, add diversification or address client needs.

Get to know the key differences—and risks— between active semi-transparent ETFs and other ETFs and actively managed funds.

Help your clients understand the inner workings of these new investment products, and how they may help them further diversify their portfolios and meet their long-term investment goals.