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      Expenses matter:
      Our low
      cost index philosophy

      Charles Schwab Investment Management

      We know that expenses matter. Just like consistent performance, every basis point counts in helping investors achieve their investment goals. That's why we're focused on offering the index products our clients and partners demand—at competitive costs. In keeping with Schwab's history of putting investors first, we are committed to operating our business through clients' eyes—sharing the benefits of our scale and efficiency with investors and the financial professionals who serve them whenever and wherever we can.

      Our commitment to low cost index investing

      As President and CEO of Charles Schwab Investment Management, Marie Chandoha is leading the charge to keep our index costs among the lowest in the industry.

      Marie Chandoha

      President and CEO, Charles Schwab Investment Management

      Your partner for low cost index products

      We strive to be a reliable partner by delivering low cost index-based products—without sacrificing the quality or service you deserve.

      Low cost ETFs

      As one of the largest and fastest growing ETF families, we are able to offer the broad market access and diverse investment options that clients seek—with some of the lowest expenses in the industry.

      85+%

      of Schwab market cap index ETFs have expenses lower than 0.10%1

      0.05%

      asset-weighted average expense ratio1

      Lowest cost market cap index mutual funds with no minimums

      While some firms offer their best pricing only to big institutions, we offer all investors the same access to the same low cost market cap index mutual funds–with no minimums.

      100%

      of Schwab market cap index mutual funds have expenses lower than 0.10%1

      0.04%

      asset-weighted average expense ratio1

      Low cost target date funds

      To keep our expenses low, we construct our Schwab Target Index Funds with ETFs, providing low cost, efficient access to each asset class. This enables us to offer the lowest-cost target date mutual funds on the market for employer-sponsored retirement plans.

      0.08%

      with no minimum initial investment for Institutional Shares*2

      0.13%

      with a $100 minimum initial investment for Investor Shares2

      See how we compare with other providers >

      The impact of expenses

      Over time, a few basis points can add up to real costs that erode the value of any investment.

      Investment Amount $55k
      question mark iconX Operating expense ratio (OER): The annual rate an ETF charges to pay for the fund’s management, administration and other costs.
      $10k $55k $100k
      Operating Expense Ratio 0.75%
      question mark iconX Operating expense ratio (OER): The annual rate an ETF or mutual fund charges to pay for the fund’s management, administration and other costs.
      0% 0.75% 1.5%
      Portfolio Value Before
      Fees and Expenses
      Years
      For illustrative purposes only. These projections assume a 5% rate of return, are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results. Fees will impact your portfolio even during periods of negative market performance. The chart does not reflect all fees that may be charged and is not representative of any actual investment, product, or fee structure.

      Lending for the benefit of shareholders

      Our investor-first philosophy also drives our approach to securities lending. We do not seek to profit from securities lending as a means to justify lower expenses. For the funds that participate in securities lending, we use third-party lending agents, and 100% of securities lending revenue (net of program costs and expenses) is returned to the funds for the benefit of shareholders, which may enhance fund performance.

      Learn more about our approach to securities lending >

      A leader in investment management for over 25 years, we have a long history and deep understanding of index investing

      $0B

      in index mutual fund and ETF AUM

      3rd

      largest provider of index mutual funds3

      5th

      largest provider
      of ETFs3

      Learn more about our index-based products

      Schwab Market Cap ETFs & Mutual Funds

      Explore >

      Schwab Fundamental Index* ETFs & Mutual Funds

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      Schwab Target Index Funds

      Explore >

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