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Not FDIC-Insured · No Bank Guarantee · May Lose Value
Choosing the right smart beta strategy
Michael Savage, CFA, Managing Director and Client Portfolio strategist, discusses key distinctions between Schwab's Fundamental Index* mutual funds and ETFs and how they differ from many new entrants in the smart beta market, and suggests three attributes for investors to look for when evaluating a smart beta strategy.
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. Unlike mutual funds, shares of ETFs are not individually redeemable directly with the ETF. ETF shares are bought and sold at market price, which may be higher or lower than the net asset value (NAV).
Charles Schwab Investment Management, Inc. (CSIM), the investment advisor for Schwab's proprietary funds, and Charles Schwab & Co., Inc. (Schwab, Member SIPC ), the distributor for Schwab Funds, are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation.
Schwab ETFs are distributed by SEI Investments Distribution Co. (SIDCO). SIDCO is not affiliated with The Charles Schwab Corporation or any of its affiliates.
The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. Any securities mentioned are for illustrative purposes only and not a recommendation to transact in any security.
Michael Savage is an employee of Charles Schwab & Co., Inc.
*Fundamental Index is a registered trademark of Research Affiliates, LLC, which is not affiliated with CSIM or Schwab.(1116-PPWR)