Index
Index mutual funds and index exchange-traded funds (ETFs) can help provide efficient access to a wide swath of markets—often at lower costs than actively managed funds.
Introducing the Schwab Mortgage-Backed Securities ETF
With an expense ratio of just 0.03%, SMBS provides low-cost access to investment-grade mortgage-backed securities (MBS) issued and/or guaranteed by U.S. government agencies. SMBS could be a good fit for clients seeking income and portfolio diversification.
What we offer
In 1991, we launched our first index fund, the Schwab 1000 Index® Fund, based on Schwab's proprietary index methodology. Since then, we've become the fifth-largest ETF provider in the U.S., with over $385 billion in AUM, and the third-largest retail index mutual fund provider in the U.S., with over $197 billion in AUM.1 We offer index products that give investors the tools to help build a diversified portfolio.
Our approach
We focus on the investor, rather than chasing down the latest investment trend. Our index mutual funds and index ETFs include simple, low-cost, core investment products, spanning both the equity and bond markets, and can help offer the diversification required in a well-rounded portfolio.
Differentiators
- Among the lowest costs in the industry.
- No minimum investment.
- 22 out of 29 of our index ETFs exceed $1 billion in AUM.2
Benefits
- Established, long-tenured investment management expertise.
- Opportunity to build a diversified portfolio for only four basis points on average by investing in just three Schwab ETF products.3
- Average expense ratio of 11 basis points across our index ETFs and 14 basis points across our index mutual funds.4
Learn more about Schwab index mutual funds and index ETFs
Low-cost index philosophy
Expenses matter. Every basis point counts in helping investors achieve their investment goals. That's why we're focused on offering the index products investors and their advisors want—at competitive costs.
Schwab market cap index ETFs
Schwab ETF expenses are among the lowest in the industry. Over 85% of Schwab market cap index ETFs have expenses lower than 0.10%, with an asset-weighted average total expense ratio of just 0.05%.5
Compare costs of Schwab market cap index ETFs
Schwab Fundamental Index* mutual funds and ETFs
While fund expenses should not be the only factor in choosing a strategic beta strategy, selecting a strategy with a low expense ratio remains an important consideration—especially over long time horizons. The asset-weighted average total expense ratio for Schwab Fundamental Index ETFs and mutual funds is 0.28% and 0.26%. 6
Learn more about Schwab Fundamental Index mutual funds and ETFs
Schwab market cap mutual funds
Schwab offers market cap index mutual funds with no minimums at among the lowest costs in the industry. All Schwab market cap index mutual fund expenses are less than 0.10%, with an asset-weighted average total expense ratio of just 0.03%.5
Learn more about Schwab market cap mutual funds
Educational resources
Do you have questions about ETFs, but don’t know where to find the answers? Check out the ETF education hub for the knowledge you need, from basic to advanced.
ETF education hub
Explore tools, analysis and insights designed to help advisors refine their ETF strategy and help meet their clients’ financial goals.
Advisor tools
Use these financial tools to gain more comprehensive insight into investment products.
Advisor tools
Featured index products
See our highlighted index mutual funds and ETFs or browse all our investment products.
Index insights
See what our executives and strategists have to say about index investing.