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Our low-cost index philosophy

Expenses matter.

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 index products at competitive costs. 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.

Your partner for low-cost index products

ETFs

As one of the largest and fastest-growing market cap index ETF families, we offer broad market access and diverse investment options—with some of the lowest expenses in the industry.

0.05%

asset-weighted average expense ratio1 

Mutual funds

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

0.04%

asset-weighted average expense ratio1

Target index funds

To keep expenses low, we construct our Schwab Target Index Funds with ETFs. Schwab Target Index Funds are among the lowest-cost target date mutual funds available.

0.08%

net expense ratio with no minimum investment2

Lending for the benefit of shareholders

Lending for the benefit of shareholders

Our investor-first philosophy also drives our approach to securities lendingWe 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. All securities-lending revenue (net of program costs and expenses) is returned to the funds for the benefit of shareholders, which may enhance fund performance.

Lending for the benefit of shareholders

The impact of expenses

Over time, a few basis points can add up to real costs that erode the value of an investment. Use our fee impact simulator to see how costs can affect a portfolio over time.

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. The projections do not reflect the reinvestment of interest and dividends or impact of capital gains or taxes.

30 years experience in investment management

We have a long history and deep understanding of index investing.

  • $245B+

    in index mutual fund and ETF assets under management3

  • 3rd

    largest provider of index mutual funds4

  • 5th

    largest provider of ETFs4

Break away from high costs

Explore our low-cost index-based products.

ETFs

Mutual funds

Target index funds

Break away from high costs