Alright, folks, gather around, because Schwab’s making waves again. Yep, the fancy suits over at Schwab Asset Management decided it’s time to launch a shiny new toy: the Schwab Mortgage-Backed Securities ETF. This bad boy, set to start trading around November 19, is joining the ranks to offer a taste of the mortgage-backed security action.
Contents
What Sets This ETF Apart?
Here’s the kicker: the Schwab Mortgage-Backed Securities ETF boasts an impressive expense ratio of just 0.03%. That’s a wallet-friendly move, putting it on par with some of the lowest-priced competitors in the U.S. Mortgage Lipper category.
| Feature | Details |
|---|---|
| Expense Ratio | 0.03% |
| Index | Bloomberg US MBS Float Adjusted Total Return Index |
| Agencies | Ginnie Mae, Fannie Mae, Freddie Mac |
The Strategy
The ETF aims to hug close to the Bloomberg US MBS Float Adjusted Total Return Index. In simple terms, it’s like a tour guide to the investment-grade mortgage-backed securities world. It’s got the backing of Ginnie, Fannie, and Freddie—all those federal heavyweights ensuring you’re not out there alone.
“Times have been wild for fixed income,” says Nicohl Bogan, Schwab’s head honcho of Passive Product Management and Innovation. “We’re thrilled to drop the Schwab Mortgage-Backed Securities ETF. It’s kind of our peace offering to investors, directly leveraging our capital markets prowess. We’re talking about a competitively priced, core market tool for those well-diversified portfolios.”
The Bigger Picture
This isn’t Schwab’s first rodeo. They’re marking 15 years in the ETF game this year. They know the ropes and are eager to hang their latest masterpiece on the Wall Street gallery.
A Closer Look at Fixed Income
- Schwab’s Commitment: Schwab is all about helping clients navigate the fixed income universe, even when it feels like Times Square on New Year’s Eve.
- Investment-Grade Focus: They’re not throwing you to the wolves. The ETF deals strictly with U.S. government agency-backed securities that take a bit of that edge off your risk.
Schwab Celebrates Again
Mark this moment—Schwab celebrating over a decade and a half in the ETF world. They’ve got a knack for this, and you better believe they’re keen on keeping the momentum as Chipotle Assembly Lines shift humans to AI The 401(k) Specialist(https://www.cnbc.com/2023/01/18/chipotle-tests-robots-in-the-kitchen.html) in their New York taco shops. Let’s see what this new ETF wave brings to the Big Apple.
In other news, confidence among workers approaching retirement is on a bit of an upswing, according to Schwab’s 401(k) study. Guess the financial landscape is looking a tad brighter for tomorrow.
Now over to you, Amanda. While you’re traipsing around Denver, catching a new favorite show, keep those New York roots strong and keep us informed on all things finance. Life’s a mix of Broadway and Wall Street, after all!
