Asset Management

Asset Management
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Fixed income strategies

Fixed income investments can play an important role in helping investors diversify their portfolios, plan for retirement, generate income, and potentially minimize taxes.

Strategies for clients seeking income

No matter which direction the markets may be headed, some of your clients are likely to need income. Learn more about the many income strategies that Schwab Asset Management® has to offer.

Our approach

We focus on what’s best for meeting investor needs. And that means taking a philosophical approach that uses qualitative and quantitative elements for managing risk. We also focus on keeping fund fees and expenses low to help benefit investors’ total net return.

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What we offer

Our fixed income strategies are available in ETFs, mutual funds, and separately managed accounts that seek to deliver consistent results across a range of market environments. They cover all major sectors, including broad market, government, corporate, and municipals.

Separately managed accounts

Our separately managed account (SMA) product lineup gives investors more control, personalization, and transparency for investing. For income, we offer a wide range of SMAs, including Wasmer Schroeder™ Strategies, with both taxable and tax-exempt actively managed and bond ladder portfolio strategies.

Learn about our separately managed accounts.
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Mutual funds

We offer a straightforward lineup of fixed income mutual funds designed to build the foundation of your clients’ portfolios. Fund expenses are competitive, with index mutual fund expenses starting as low as 0.02%, with no investment minimum.2 And our tools help make researching and selecting mutual funds easier for both you and your clients.

Learn about our mutual funds
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ETFs

Our bond ETF offerings provide your clients with a wide range of low-cost choices for strengthening the diversity of their portfolios. Additionally, our bond ETFs can potentially offer tax efficiency, liquidity, and transparency. Use our advisor tools to help you better evaluate and screen our ETF selection.

Learn about our ETFs
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Advisor resources

Fee impact simulator

Use the fee impact simulator to see the long-term effects of expenses on a portfolio.

Fee impact simulator
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ETF education hub

Explore tools, analysis and insights designed to help advisors refine their ETF strategy and help meet their clients’ financial goals.

ETF education hub
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Featured products

SCCR

Schwab Core Bond ETF

SMBS

Schwab Mortgage Backed-Securities ETF

SCUS

Schwab Ultra-Short Income ETF

1. Morningstar categories are not assigned until after inception date.  Comparison based on Schwab Asset Management’s analysis of categories with ETFs that have similar characteristics to SCCR, as of March 30, 2025.

2. Expense ratios and minimums as of June 1, 2025 and are subject to change.

3. Schwab Asset Management is the 5th largest provider of ETFs. Source: Lipper. Ranking based on assets under management (AUM) as of June 30, 2025.

4. NAIC designations are the intellectual property of the National Association of Insurance Commissioners (NAIC) and are redistributed here under license. An NAIC designation is a proprietary symbol used by the NAIC Securities Valuation Office (SVO) to denote a category or band of credit risk ( i.e., the likelihood of repayment in accordance with a written contract) for an issuer or for a security. NAIC designations may be notched up or down to reflect the position of a specific liability in the issuer’s capital structure and/or the existence of other nonpayment risk in the specific security. Under NAIC reporting rules, shares of an ETF are presumed to be reportable as common stock. The SVO may classify an ETF, for reporting with an NAIC designation, as a bond or preferred stock and assign it an NAIC designation if it meets the defined criteria. For a discussion of these criteria, please call the SVO or refer to the Purposes and Procedures Manual of the NAIC Investment Analysis Office. The assignment of an NAIC designation is not a recommendation to purchase the ETF and is not intended to convey approval or endorsement of the ETF sponsor or the ETF by the NAIC.

5. Source: Schwab Asset Management’s analysis of expense ratios using Morningstar data, as of 7/14/25.

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 www.schwabassetmanagement.com/prospectus.  Please read it carefully before investing.

Please refer to the Charles Schwab Investment Management, Inc. Disclosure Brochure for additional information.

​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 Schwab Mortgage-Backed Securities ETF 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 Ultra-Short Income ETF is not a money market fund and does not seek to maintain a stable net asset value of $1.00 per share. The fund is not subject to the strict rules that govern the diversity, quality, maturity, liquidity and other features of securities that money market funds may purchase designed to enable money market funds to maintain a stable share price and to limit investment risk. Under normal circumstances, the fund’s investments may be more susceptible than a money market fund is to credit risk, interest rate risk, valuation risk and other risks relevant to the fund’s investments. The fund does not seek to maintain a stable net asset value of $1.00 per share. Therefore, the fund’s net asset value per share and market value will fluctuate, and these fluctuations may be significant on certain days. There can be no guarantee that the fund will generate higher returns than money market funds. In addition, the fund does not qualify for certain tax relief afforded to money market funds by the U.S. Treasury.

The Schwab Ultra-Short Income ETF and the Schwab Core Bond ETF are actively managed exchange-traded funds and therefore do not seek to replicate the performance of any specific index. The funds may have a higher degree of portfolio turnover than funds that seek to replicate the performance of an index.

An actively-managed fund is subject to the risk that its investment adviser and/or subadviser will select investments or allocate assets in a manner that could cause the fund to underperform or otherwise not meet its investment objective.

The funds may invest in U.S.-registered, dollar-denominated bonds of non-U.S. corporations. The funds' investments in bonds of non-U.S. issuers may involve certain risks that are greater than those associated with investments in securities of U.S. issuers. These include risks of adverse changes in foreign economic, political, regulatory and other conditions; the imposition of economic sanctions or other government restrictions; differing accounting, auditing, financial reporting and legal standards and practices; differing securities market structures; and higher transaction costs. These risks may be heightened in connection with bonds issued by non-U.S. corporations and entities in emerging markets.

There are risks associated with any investment approach, the Wasmer Schroeder Strategies have their own set of risks. The Wasmer Schroeder Strategies invests primarily in fixed income instruments and as such the strategies are subject to various risks including but not limited to interest rate risk, reinvestment risk, credit risk, default risk and event risk. 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.

Diversification strategies do not ensure a profit and do not protect against losses in declining markets.

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).

Tax-exempt bonds are not necessarily an appropriate investment for all persons. Information related to a security's tax-exempt status (federal and in-state) is obtained from third-parties and Schwab Asset Management®​ does not guarantee its accuracy. Tax-exempt income may be subject to the Alternative Minimum Tax (AMT). Capital appreciation from bond funds and discounted bonds may be subject to state or local taxes. Capital gains are not exempt from federal income tax.

Portfolio Management for Wasmer Schroder Strategies is provided by Charles Schwab Investment Management, Inc., dba Schwab Asset Management®, a registered investment adviser and an affiliate of Charles Schwab & Co, Inc. ("Schwab"). Both Schwab Asset Management and Schwab are separate entities and subsidiaries of The Charles Schwab Corporation.

BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). Bloomberg or Bloomberg’s licensors own all proprietary rights in the Bloomberg Indices. Neither Bloomberg nor Bloomberg’s licensors approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.

​The selection of the underlying funds and the allocation of the fund’s assets among the various asset classes and market segments may cause the funds to underperform other funds with a similar investment objective.

The funds' monthly income payments will be made from fund assets and will reduce the amount of assets available for investment by the funds. Even if the funds' capital grows over time, such growth may be insufficient to enable the funds to maintain the amount of its targeted annual payout and targeted monthly income payments. The funds' investment losses may reduce the amount of future cash income payments an investor will receive from the funds. The dollar amount of the funds' monthly income payments could vary substantially from one year to the next and over time depending on several factors, including the performance of the financial markets in which the funds invest, the allocation of funds' assets across different asset classes and investments, the performance of the funds' investment strategies, and the amount and timing of prior distributions by the funds. It is also possible for payments to go down substantially from one year to the next and over time depending on the timing of an investor’s investments in the funds. Any redemptions will proportionately reduce the amount of future cash income payments to be received from the funds. There is no guarantee that the funds will make monthly income payments to its shareholders or, if made, that the funds' monthly income payments to shareholders will remain at a fixed amount.

0725-CCRS 6588110.1 0725-CCRW 3724221.4

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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