Schwab ETFs can provide straightforward access to broad asset-class exposure for building the foundation of a diversified portfolio.
Introducing the Schwab Ariel ESG ETF
For investors seeking a semi-transparent (also known as non-transparent) actively managed ETF that incorporates environmental, social, and governance (ESG) considerations managed by an established sub-advisor with almost 40 years of experience managing ESG investments.
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 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.
What we offer
With over a decade of experience in the industry, we are one of the nation’s largest and most established ETF providers. Our core strategies span both the broad-based equity and bond markets. We offer a carefully designed lineup of low-cost market cap index and Fundamental Index® ETFs that can be used as part of the foundation of a diversified portfolio.
In today’s environment of ever-increasing complexity, we stay focused on the core of an investor’s portfolio. By consistently putting investor interests first, we have been able to provide a set of competitively priced ETF products, including low-cost market cap index and strategic beta strategies. Each of these can play an important role in a portfolio, and combining them can help provide better diversification and the potential for more attractive risk-adjusted returns across various market cycles.
Expenses among the lowest in the industry
We have sought to eliminate cost as a hurdle to investing in investment products. With our targeted set of low-cost Index ETFs, we seek to share the benefits of our scale and efficiency with investors, and the financial professionals who serve them, wherever we can.
Schwab market cap index ETFs
Schwab ETF expenses are among the lowest in the industry. More than 85% of Schwab market cap index ETFs have expenses lower than 0.10%, with an asset-weighted average expense ratio of just 0.05%.1 The ETFs hold securities that are screened and weighted based on the size of their market capitalization, with the largest weights assigned to the largest companies, which helps advisors build a diversified portfolio for their clients.
Compare costs of Schwab market cap index ETFs to the largest issuers
Schwab Fundamental Index ETFs
While fund expense alone should not be the only factor in choosing a strategic beta strategy, selecting a strategy with a low expense ratio remains an important consideration—especially over long time horizons. The average expense ratio for Schwab Fundamental Index ETFs is 0.30%—lower than the industry average of 0.36% for Fundamental Index ETFs,2 and the average expense ratio of 0.48% for multi-factor ETFs.3
Learn more about Schwab Fundamental Index ETFs
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