Schwab Asset Management Reduces Fees on Four Equity Index ETFs

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.

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