Schwab Asset Management launches its first actively managed fixed income ETF 

Schwab Asset Management’s first actively managed fixed income ETF began trading Tuesday on the New York Stock Exchange, under the ticker SCUS.

The Schwab Ultra-Short Income ETF has an expense ratio of 0.14%, below the industry average of 0.25%, and seeks current income consistent with capital preservation while maintaining liquidity.

To this aim, the new ETF invests in investment grade, short-term, US dollar denominated debt securities issued by US and foreign issuers. It will maintain a portfolio duration of one year or less.

SCHOLARSHIP AWARDS

Meanwhile, Schwab Advisor Services in partnership with Charles Schwab Foundation has announced its latest round of its Registered Investment Advisor Talent Advantage Student Scholarship, the fourth consecutive year that the firm has helped increase diversity in the RIA through supporting those who face financial barriers to their studies.

“We are committed to creating equitable access to the industry through programs that can empower students to pursue their educational dreams while supporting them as they excel in the financial services industry and beyond,” said Jon Beatty, Managing Director, Head of Advisor Services. “This year’s scholarship winners are dedicated, curious, and inspiring individuals who will push the industry forward in more ways than one.”

The scholarship initiative is hotly contested with 500 applicants in 2024 vying to receive $10,000 towards their enrollment for the 2024-2025 academic year, along with mentorship from an independent RIA leader.

Schwab research shows that 36% of RIA firms recruited from colleges and universities last year.

“Not only are firms looking for new talent, but they are recognizing the value of hiring a diverse team of employees to best reflect the needs of clients today, and tomorrow,” said Lisa Salvi, Managing Director of Advisor Services. “We are thrilled to be helping students strive toward career goals while fueling the RIA industry.”