Charles Schwab Corp. is stepping up its offerings of fixed-income ETFs.
The San Francisco-based broker’s asset management arm is planning to start three new products focused on corporate bonds and Treasuries, almost doubling the number of debt exchange-traded funds it offers, regulatory filings show.
The decision marks a shift for Charles Schwab Investment Management, which has largely ridden its equity-fund offerings to become the fifth-largest ETF issuer in the U.S.More than 84% of the $146 billion in Schwab ETFs is invested in stocks. But with global bond ETFs surpassing $1 trillion this year, debt funds are increasingly important for further growth.
The firm is keen to fill “gaps” in its fixed-income lineup, CSIM’s Jonathan de St. Paer said earlier this year before taking over as chief executive in April.
The planned funds and their trading tickers are:
- Schwab Short-Term Corporate Bond ETF (SCHJ)
- Schwab Intermediate-Term Corporate Bond ETF (SCHI)
- Schwab Long-Term U.S. Treasury ETF (SCHQ)
The firm didn’t disclose the intended management fees.