Today, the Schwab Municipal Bond ETF (SCMB) begins trading on the NYSE Arca. The fund, from Schwab Asset Management, the asset management arm of The Charles Schwab Corporation, is the lowest cost ETF¹ to provide access to the broad U.S. investment grade, tax-exempt bond market.

“We’re excited to be able to offer investors the Schwab Municipal Bond ETF, not only at a time when yields on municipal bonds are attractive but also when investors are seeking a low-cost, straightforward approach to income, diversification and risk management in their portfolios,” said John Sturiale, Head of Product Management and Innovation, Schwab Asset Management.

The Schwab Municipal Bond ETF’s goal is to track as closely as possible, before fees and expenses, the total return of the ICE AMT-Free Core U.S. National Municipal Index, which measures the performance of the U.S. AMT-free municipal bond market. It seeks to provide income exempt from federal taxes and not subject to the federal alternative minimum tax (AMT). The fund has a high credit quality profile, investing only in investment-grade rated securities.

For more information, review the prospectus here.

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 June 30, 2022, Schwab Asset Management managed approximately $575.9 billion on a discretionary basis and $34.4 billion on a non-discretionary basis. More information is available at www.schwabassetmanagement.com.

About Charles Schwab

At Charles Schwab we believe in the power of investing to help individuals create a better tomorrow. We have a history of challenging the status quo in our industry, innovating in ways that benefit investors and the advisors and employers who serve them, and championing our clients’ goals with passion and integrity.

More information is available at www.aboutschwab.com. Follow us on Twitter, Facebook, YouTube and LinkedIn.

Disclosures:

Investors should consider carefully information contained in the prospectus, or if available, the summary prospectus, including investment objectives, risks, charges and expenses. You can obtain a prospectus, or if available, a summary prospectus by visiting schwabassetmanagement.com/prospectus. Please read it carefully before investing.

Investment returns will fluctuate and are subject to market volatility, so that an investor’s shares, when redeemed or sold, may be worth more or less than their original cost. Unlike mutual funds, shares of ETFs are not individually redeemable directly with the ETF. Shares of ETF are bought and sold at market price, which may be higher or lower than the net asset value (NAV).

Diversification and asset allocation strategies do not ensure a profit and do not protect against losses in declining markets.

Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed-income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors.

Tax-exempt bonds are not necessarily a suitable investment for all persons. Information related to a security’s tax-exempt status (federal and in-state) is obtained from third parties and Schwab does not guarantee its accuracy. Capital appreciation and income from bond funds and discounted bonds may be subject to state or local taxes. Capital gains are not exempt from federal income tax.

“ICE®” is a service/trademark of ICE Data Indices, LLC (“ICE”) or its affiliates. This trademark has been licensed, along with the ICE AMT-Free Core U.S. National Municipal Index (“Index”) for use by Charles Schwab Investment Management, Inc., dba Schwab Asset Management, in connection with the Schwab Municipal Bond ETF (the “Fund”). The Schwab Municipal Bond ETF is not sponsored, endorsed, sold or promoted by ICE Data Indices, LLC, its affiliates or its Third-Party Suppliers (“ICE Data and its Suppliers”). ICE Data and its Suppliers make no representations or warranties regarding the advisability of investing in the Fund. Past performance of an Index is not an indicator of or a guarantee of future results. The full ICE Data Indices disclaimer is located in the Schwab Municipal Bond ETF’s statutory prospectus and/or statement of additional information located here: www.schwabassetmanagement.com/schwabetfs_prospectus and such ICE Data disclaimer is expressly incorporated here by reference.

Schwab Asset Management™ is the dba name for Charles Schwab Investment Management, Inc. (CSIM), the investment adviser for Schwab ETFs. Schwab ETFs are distributed by SEI Investments Distribution Co. (SIDCO). Schwab Asset Management is a separate but affiliated company and subsidiary of The Charles Schwab Corporation, and is not affiliated with SIDCO.

(1022-2BP5)

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¹ With a net expense ratio of 0.03%, SCMB has the lowest fees when compared to ETFs in both the Morningstar Muni National Intermediate category and the Lipper General + Insured Municipal Debt category as of 10/7/2022. Morningstar and Lipper categories are not assigned until after inception date. Comparison based on Schwab Asset Management’s analysis of categories with ETFs that have similar characteristics to SCMB.

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