Schwab Releases U.S. Aggregate Bond ETF

July 14, 2011 ( - Charles Schwab has announced the launch of the Schwab U.S. Aggregate Bond exchange traded fund (ETF), which aims to provide broad exposure to U.S. taxable bond market.

The new fund, which trades under the symbol SCHZ, is the fourteenth and most recent fund to join Schwab’s line up of proprietary ETFs. It offers low-cost, single-investment exposure to four major sectors of the investment grade, taxable U.S. bond market: Treasuries, government agencies, corporate and securitized bonds.

The fund seeks to track, before fees and expenses, the total return of the Barclays Capital U.S. Aggregate Bond Index, a broad-based benchmark that tracks the performance of the taxable, investment grade U.S. bond market. SCHZ has the lowest operating expense ratio (0.10%) among ETFs in the Morningstar Intermediate Term Bond category, according to the announcement, and can be bought and sold commission-free online in Schwab accounts.

“We have seen tremendous demand for a single vehicle that provides a core, diversified U.S. fixed income allocation,” said John Sturiale, vice president of product management at Schwab, in the announcement. “We are pleased to offer investors exposure to the overall U.S. bond market through the lowest-cost ETF in its Morningstar asset category.”


-Sara Kelly