Schwab Asset Management™, the asset management arm of The Charles Schwab Corporation, today announced the launch of the Schwab High Yield Bond ETF (NYSE Arca: SCYB). The first day of trading is expected to be on or about July 11.

With an expense ratio of 0.10%, the Schwab High Yield Bond ETF is priced in line with the lowest fee ETFs in the Morningstar High Yield Bond category. The ETF will provide simple access to the U.S. dollar denominated high yield corporate bond market and can serve as part of a diversified portfolio.

“The Schwab High Yield Bond ETF is a timely addition to our lineup of fixed income ETFs as investors continue to seek out low-cost, straightforward products that help diversify their portfolios,” said Nicohl Bogan, Director of Product Strategy and Development, Schwab Asset Management. “SCYB is a compelling offering for investors seeking potentially higher-yielding fixed income with the inherent benefits of an ETF, including tax efficiency and ease of trading.”

The goal of the Schwab High Yield Bond ETF is to track as closely as possible, before fees and expenses, the total return of the ICE BofA US Cash Pay High Yield Constrained Index. More specifically, the ETF seeks to provide broad-based exposure to the U.S. high yield corporate bond market with a focus on liquidity, while attempting to mitigate investment risk through security selection and issuer diversification.

The fifth largest provider of ETFs¹, Schwab Asset Management has more than a decade of experience managing ETFs with a robust capital markets team that plays a crucial role in ensuring the Schwab ETFs function efficiently. Schwab bond ETFs seek to be among the lowest cost across the industry’s leading ETF providers. The Schwab High Yield Bond ETF is Schwab Asset Management’s ninth bond ETF and the 30^th Schwab ETF overall.

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 March 31, 2023, Schwab Asset Management managed approximately $835.9 billion on a discretionary basis and $34.3 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 https://www.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 ETFs 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.

High-yield securities and unrated securities of similar credit quality (junk bonds) are subject to greater levels of credit and liquidity risks and may be more volatile than higher-rated securities. High-yield securities are considered predominately speculative with respect to the issuer’s continuing ability to make principal and interest payments.

The fund may invest in U.S.-registered, dollar-denominated bonds of non-U.S. corporations. The fund’s investments in bonds of non-U.S. issuers may involve certain risks that are greater than those associated with investments in securities of U.S. issuers. These include risks of adverse changes in foreign economic, political, regulatory and other conditions; the imposition of economic sanctions or other government restrictions; differing accounting, auditing, financial reporting and legal standards and practices; differing securities market structures; and higher transaction costs. These risks may be heightened in connection with bonds issued by non-U.S. corporations and entities in emerging markets.

“ICE®” is a registered trademark of ICE Data Indices, LLC or its affiliates and “BofA®” is a registered trademark of Bank of America Corporation licensed by Bank of America Corporation and its affiliates (“BofA”) and may not be used without BofA’s prior written approval. These trademarks have been licensed, along with the ICE BofA US Cash Pay High Yield Constrained Index (“Index”) for use by Charles Schwab Investment Management, Inc., dba Schwab Asset Management, in connection with the Schwab High Yield Bond ETF. The Schwab High Yield 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 Schwab High Yield Bond ETF. Past performance of an Index is not an indicator of or a guarantee of future results. The full ICE Data Indices, LLC disclaimer is located in the Schwab High Yield Bond ETF's statutory prospectus and/or statement of additional information located here: https://www.schwabassetmanagement.com/prospectus and such ICE Data Indices, LLC 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.

(0423-31NU)

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1</sup> Source: VettaFi, ETF Issuer League of Table, May 29, 2023.

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