The amount of the fees is disclosed in the prospectus of each ETF. ("CSIM") serves as investment advisor to the Schwab ETFs, which compensate CSIM out of the applicable operating expense ratios. Schwab's affiliate Charles Schwab Investment Management, Inc. Schwab does not receive payment to promote any particular ETF to its customers. Please see pricing guide for additional information. Unlisted ETFs are subject to a commission. exchange-listed can be traded without a commission on buy and sell transactions made online in a Schwab account. Shares are bought and sold at market price, which may be higher or lower than the net asset value (NAV).ĮTFs at Charles Schwab & Co., Inc. Unlike mutual funds, shares of ETFs are not individually redeemable directly with the ETF. 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. Please read the prospectus carefully before investing. You can request a prospectus by calling 80. Investors should consider carefully information contained in the prospectus or, if available, the summary prospectus, including investment objectives, risks, charges and expenses. See the Performance tab for updated monthly returns. Current performance may be lower or higher. Shares are bought and sold at market price, which may be higher or lower than the net asset value (NAV). Performance data quoted represents past performance and does not indicate future results. Schwab's Financial and Other Relationships with certain ETFsĪs your agreement for the receipt and use of market data provides, the securities markets (1) reserve all rights to the market data that they make available (2) do not guarantee that data and (3) shall not be liable for any loss due either to their negligence or to any cause beyond their reasonable control. Leverage inherently increases the level of risk in a portfolio. Bond funds that use leverage have the potential to increase the amount of income that they pay out, but at the cost of larger drops in value during a falling market. These funds are not appropriate for most investors.įunds that borrow money to purchase more assets in this way will generally move up more than the market when the market rises and move down farther than the market when the market falls. It is important to remember that these securities are generally designed for daily use only, and are generally not intended to be held overnight, because their returns over longer periods generally do not match the ETP’s multiple of the underlying index over those periods. They have the propensity to be more volatile and are inherently riskier than their non-leveraged counterparts. These securities trade much differently than other ETPs.
Leveraged ETPs (exchange-traded products) typically use derivatives to attempt to multiply the returns of the underlying index each day.
To find out more about trading Leveraged and Inverse Products, please read Leveraged and Inverse Products: What you need to know. Investors holding these ETPs should therefore monitor their positions as frequently as daily. Aggressive investment techniques such as futures, forward contracts, swap agreements, derivatives, options, can increase ETP volatility and decrease performance.
Consequently, these ETPs may experience losses even in situations where the underlying index or benchmark has performed as hoped. Compounding can also cause a widening differential between the performances of an ETP and its underlying index or benchmark, so that returns over periods longer than one day can differ in amount and direction from the target return of the same period. Due to the effects of compounding and possible correlation errors, leveraged and inverse products may experience greater losses than one would ordinarily expect. Inverse ETPs seek to provide the opposite of the investment returns, also daily, of a given index or benchmark, either in whole or by multiples. Leveraged ETPs (Exchanged Traded Products, such a ETFs and ETNs), seek to provide a multiple of the investment returns of a given index or benchmark on a daily basis.
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