Latest news with #SchwabAssetManagement
Yahoo
6 days ago
- Business
- Yahoo
Schwab to Cut Expenses on 4 ETFs as Fee Wars Wind Down
Charles Schwab Corp. (SCHW) slashed fees on four of its equity exchange-traded funds, bringing the cost of all its equity and fixed-income market-cap-weighted index ETFs below 10 basis points, according to a company announcement Monday. The fee cuts come as Morningstar reports fund fees hit record lows in 2024, with many index funds and ETFs approaching what may be a pricing floor as some providers offer zero-fee options, according to the research firm's annual study. The moves highlight how investors continue to favor the cheapest funds, with the cheapest 20% of funds attracting $930 billion in net inflows last year. Read More: Fund Fees at Record Lows but Decline Is Slowing: Morningstar The reductions, effective June 10, affect the Schwab 1000 Index ETF (SCHK), the Schwab International Equity ETF (SCHF), the Schwab International Small-Cap Equity ETF (SCHC) and the Schwab Emerging Markets Equity ETF (SCHE), according to the release. SCHK, which tracks 1,000 of the largest U.S.-listed stocks and manages $4.1 billion in assets, saw its expense ratio drop from 0.05% to 0.03%, according to Schwab Asset Management. The fund has returned 2.5% year to date, with Microsoft Corp. (MSFT) and NVIDIA Corp. (NVDA) as its top holdings at 6.3% and 6.2%, respectively. SCHF, the company's $48.1 billion international equity fund, had its fees cut from 0.06% to 0.03%, according to the announcement. The fund, which tracks the FTSE Developed ex-US Index and has gained 18.2% this year, holds SAP SE and ASML Holding NV as its largest positions. John Sturiale, head of product management and innovation at Schwab Asset Management, said the company is looking for new opportunities to make investing more accessible, according to the press release. SCHC, focused on international small-cap stocks with $4.4 billion in assets, saw its expense ratio reduced from 0.11% to 0.08%, according to Schwab. The fund has posted a 19.3% return this year and holds WSP Global Inc. as its top position. SCHE, the emerging markets fund managing $10 billion, had its fees lowered from 0.11% to 0.07%, according to the filing. Taiwan Semiconductor Manufacturing Co. (TSM) represents 9.5% of the fund's holdings, with the ETF gaining 10.4% year to date. The broader industry has seen fees approach rock-bottom levels, with many index funds already charging less than 0.05%, according to Morningstar. Some providers now offer zero-fee options, suggesting the price wars of recent years may be winding down, the research firm noted. Schwab also announced forward share splits on six mutual funds, including the Schwab 1000 Index Fund (SNXFX), which will undergo a 10-for-1 split to return its net asset value closer to its initial $10 share price after nearly 35 years, according to the company. The splits are scheduled for August 15, | © Copyright 2025 All rights reserved Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-06-2025
- Business
- Yahoo
What the May jobs report means for recession risk & Fed cuts
Treasury yields (^TYX, ^TNX, ^FVX) are edging up as jobs data shows signs of a cooling labor market without tipping into recession. Employers added 139,000 jobs in May, topping forecasts of 126,000, while the jobless rate held at 4.2%. Brian Jacobson, chief economist and strategist at Annex Wealth Management, and Omar Aguilar, Schwab Asset Management CEO and CIO, break down what the Federal Reserve may do next and how investors should position for it. To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. Treasury is selling off a bit today as the latest jobs report bolsters the case for the Fed to hold rates steady, with the labor market showing signs of gradual moderation. When can we expect to see those cuts from the Fed? Joining us now, Brian Jacobson, Aex Wealth Management's chief economist. We also have strategist Omar Aga. Alright, he is Schwab Asset Management CEO and CIO. Thank you both for being here with us this morning. uh, Brian, I want to start with you. Talk to me about your read on the labor data and just how you factor that into your kind of forecast for the economy at the moment and where we're at. Sure, yeah, thank you for having me. So here at Annex on our investment committee, when we're looking at the data, we really do think that it really supports the idea that the economy is resilient enough to basically skirt a recession this year. We did see some slowing in the payroll's growth earlier this week. There was a little bit more anxiety because of, uh, the content of the Beige Book, the ISM manufacturing and service indices, the ADP numbers. All of those are pointing to some sort of almost like kind of fissure. Of the labor market, but it's not bad enough where it looks like we're going to tip into a recession. So from the big macro perspective, we think that it supports the idea that we're going to experience some slowing but not stopping of the overall economy, and that should be a bullish indicator for earnings on a going forward basis. Omar, I want to get your take in your reading your recession probability and what that translates through to for portfolio strategy. Yeah, well, the, uh, the recession risk, you know, have come down significantly since April. Uh, I think, you know, we, we went at the high levels of, of risk probability of recession back then, mostly because of reflection of the uncertainty and, and, uh, and the numbers that we saw in terms of potential inflation implications. Um, I think it's, it's interesting to see just the, the labor market numbers today because. You know, it, it does show a little bit of slowing down of the uh growth in the uh in, in the labor market, you know, that being said, you know, we also see a significant reduction in the uh in the size of the labor market just a lot of that reflecting immigration policies, you know, that came down by around 600,000, um, so the uh overall the uh participation rate has come. Down so what that translate into is, you know, it probably is neutral for the Fed in terms of uh decision making and what that means is, you know, probably we're still thinking about early September as the earliest for them to do the first cut because this labor market report, even though it does uh show signs of softening, you know, it doesn't necessarily translate into potentially reduction in inflation numbers.
Yahoo
06-06-2025
- Business
- Yahoo
What the May jobs report means for recession risk & Fed cuts
Treasury yields (^TYX, ^TNX, ^FVX) are edging up as jobs data shows signs of a cooling labor market without tipping into recession. Employers added 139,000 jobs in May, topping forecasts of 126,000, while the jobless rate held at 4.2%. Brian Jacobson, chief economist and strategist at Annex Wealth Management, and Omar Aguilar, Schwab Asset Management CEO and CIO, break down what the Federal Reserve may do next and how investors should position for it. To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. Sign in to access your portfolio
