Schwab Asset Management, the asset management arm of The Charles Schwab Corporation, announced today the launching of the Schwab Mortgage-Backed Securities ETF (listed as SMBS on NYSE Arca). The first trading day is expected to be on or about November 19.
With an expense ratio of 0.03%, the Schwab Mortgage-Backed Securities ETF is priced in line with the lowest-priced peer ETFs – which is based on the U.S. Mortgage Lipper category. This ETF will offer simple access to investment-grade mortgage-backed securities issued and guaranteed by U.S. government agencies. It is designed to serve as part of a diversified portfolio.
The Schwab Mortgage-Backed Securities ETF aims to track, as closely as possible, the Bloomberg US MBS Float Adjusted Total Return Index before fees and expenses. And the ETF invests in mortgage-backed pass-through securities guaranteed by the Government National Mortgage Association (Ginnie Mae), the Federal National Mortgage Association (Fannie Mae), and the Federal Home Loan Mortgage Corporation (Freddie Mac) that are backed by pools of mortgages.
The Schwab Mortgage-Backed Securities ETF is launched when Schwab Asset Management is celebrating 15 years since entering the ETF space. And since that time, Schwab Asset Management has become the fifth-largest provider of ETFs2 and is known for its commitment to low costs and taking a thoughtful approach to growing its lineup.
KEY QUOTES:
“It’s been a notable period for the fixed income market, and at Schwab Asset Management we’re deeply committed to helping clients with their fixed income investing needs. We’re excited to introduce the Schwab Mortgage-Backed Securities ETF as the latest example of that effort. This launch is a prime example of how we are leveraging our scale and deep capital markets expertise to bring investors and advisors competitively priced offerings that provide core market exposures for well-diversified portfolios.”
- Nicohl Bogan, Head of Passive Product Management & Innovation, Schwab Asset Management
