Schwab Asset Management, Charles Schwab Corp.'s asset management arm, plans to launch the Schwab Core Bond ETF, an actively managed fixed income exchange-traded fund, on Feb. 5.
The Schwab Core Bond ETF's 0.16% expense ratio is below the 0.40% industry average, Schwab said Monday. The fund, ticker SCCR, seeks to provide total return while generating income by investing in debt securities such as corporate bonds, taxable municipal bonds, mortgage pass-through securities, commercial mortgage-backed securities, asset-backed securities, U.S. Treasurys and other government-related bonds.
Based on the Wasmer Schroeder Core Bond Separately Managed Account investment process, portfolio managers who have managed Wasmer Schroeder strategies — John Majoros, senior portfolio manager and co-head of SMA strategies, and Brian Luedtke, senior portfolio manager — will oversee the new fund. They will target attractive, risk-adjusted returns using qualitative and quantitative methods to manage a diversified portfolio of bonds across multiple sectors, backed by Schwab Asset Management’s credit research team.
“The Schwab Core Bond ETF provides investors with access to our portfolio management team’s expertise, along with the inherent features of an ETF,” David Lafferty, product management and innovation at Schwab Asset Management, said in a statement. “In today’s rate environment, investors have the potential to capture a healthy level of income and navigate total market volatility by diversifying their core bond exposure with high-quality bonds.”
The launch follows the addition of the actively managed Schwab Ultra-Short Income ETF (SCUS) in 2024.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.