The new fund, which trades under the symbol SCHZ, is the fourteenth fund to join Schwab’s line up of proprietary exchange-traded funds. 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.