Schwab Asset Management Reduces Fees on Four Equity Index ETFs
Key Takeaways:
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Schwab is cutting fees on SCHM, SCHA, SCHC, and SCHE, effective June 11, 2026.
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A large share of Schwab’s core market-cap weighted ETF lineup is now priced at just 3 bps.
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The fee cuts make diversified U.S. and global ETF portfolios even more affordable for investors.
WESTLAKE, Texas, June 11, 2026–(BUSINESS WIRE)–Schwab Asset Management®, the asset management arm of The Charles Schwab Corporation and the fifth-largest provider1 of ETFs, today announced the reduction of operating expense ratios for four equity index ETFs: the Schwab U.S. Mid-Cap ETF (SCHM), Schwab U.S. Small-Cap ETF (SCHA), Schwab International Small-Cap Equity ETF (SCHC), and Schwab Emerging Markets Equity ETF (SCHE). The fee reductions are effective June 11, 2026. Out of Schwab Asset Management’s 24 market-cap weighted, index equity and fixed income ETFs, 16 are now offered at only 3 basis points (bps).
“Schwab is proud to leverage our growth and efficiencies to drive down costs for investors to better help them achieve their investment goals,” said Nicohl Bogan, Director of Product Strategy and Development, Schwab Asset Management. “With today’s fee reductions, building a diversified, index-based portfolio is more cost-effective than ever before with Schwab index ETFs.”
Schwab Equity Index ETF Expense Ratio Changes
|
Name of Fund (Ticker) |
Operating Expense Ratio Prior to June 11 |
Operating Expense Ratio After June 11 |
|
Schwab U.S. Mid-Cap ETF (SCHM) |
0.04% |
0.03% |
|
Schwab U.S. Small-Cap ETF (SCHA) |
0.04% |
0.03% |
|
Schwab International Small-Cap Equity ETF (SCHC) |
0.08% |
0.06% |
|
Schwab Emerging Markets Equity ETF (SCHE) |
0.07% |
0.06% |
With these fee reductions, an investor can construct a U.S. diversified portfolio that includes large-, mid- and small-cap equities; treasury, corporate and municipal bonds; and diversifying asset categories like REITs, utilizing Schwab market cap-weighted index ETFs, that have expense ratios ranging from 3 bps to 7 bps. In nominal terms, that means an investor with $10,000 would incur annual fund expenses of approximately $3 to $7, depending on the applicable expense ratio2.
Extending that portfolio to include international equities such as developed markets, emerging markets and international dividend equities, expense ratios range now from 3 bps to 8 bps. Thinking of that same investor with $10,000, the annual fund expenses would be approximately $3 to $8.3
To learn more about Schwab Asset Management’s entire lineup of ETFs, visit www.schwabassetmanagement.com.
About Schwab Asset Management
One of the industry’s largest and most experienced asset managers, Schwab Asset Management offers a focused lineup of competitively priced ETFs, mutual funds and separately managed account strategies designed to serve the central needs of most investors. By operating through clients’ eyes, and putting them at the center of our decisions, we aim to deliver exceptional experiences to investors and the financial professionals who serve them. As of March 31, 2026, Schwab Asset Management managed approximately $1.6 trillion on a discretionary basis and $42.5 billion on a non-discretionary basis. More information is available at www.schwabassetmanagement.com.
