Schwab Asset Management, the asset management arm of The Charles Schwab Corporation and the fifth-largest provider of ETFs, has announced the reduction of operating expense ratios for the Schwab High Yield Bond ETF (SCYB) and the Schwab U.S. TIPS ETF (SCHP), bringing the fees for Schwab Asset Management’s entire line-up of fixed income ETFs to three basis points.
The firm writes that all of its fixed income ETFs are now among the lowest-priced ETFs in each of their respective Morningstar categories. The price changes go into effect September 25, 2023.
“At Schwab Asset Management we are proud to continue our legacy of driving cost savings for investors with a focus on what is most meaningful to our clients,” says Nicohl Bogan, Director of Product Strategy and Development, Schwab Asset Management. “Fixed income has been in the spotlight for investors in a higher interest rate environment. We have seized the opportunity to expand our fixed income offerings, recently launching high yield and municipal bond ETFs, while also helping investors save on fees.”