SCHZ Fund Description

The Schwab U.S. Aggregate Bond ETF tracks a broad index of U.S. investment grade fixed-income securities including corporate and government bonds as well as mortgage-backed securities.

SCHZ ETF.com Insight

SCHZ has the segment’s lowest expense ratio (6 bps), but some volatility in tracking its index and its relatively wide spreads mean all-in costs will be slightly above itsall-in costs will be slightly above its competitors competitors. Despite some trivial maturity distribution differences, SCHZ has almost identical portfolio statistics as our benchmark. The fund offers marketlike exposure and returns. SCHZ is a solid choice for buy-and-hold investors, but active traders will be better served by more liquid funds like AGG and BND. (Insight updated 09/30/2014)

1 Year

Performance [as of 12/18/14]
1 Month
3 Month
YTD
1 Year
3 Years
5 Years
10 Years

SCHZ
0.44% 1.92% 5.80% 5.08% 2.37% -- --

SCHZ (NAV)
0.44% 1.94% 5.65% 5.33% 1.92% -- --

-- -- -- -- -- -- --
All returns over 1 year are annualized. All returns are total returns unless otherwise stated.

SCHZ Top 10 Countries

SCHZ Top 10 Sectors

SCHZ Top 10 Holdings

SCHZ Summary Data

Issuer Charles Schwab

A company that produces and manages ETFs.

Inception Date 07/14/11

The first date of a fund's operations, as documented by the issuer.

Legal Structure Open-Ended Fund

The organizational structure of the fund or ETN.

Expense Ratio 0.06%

The net total annual fee a fund holder pays to the issuer.

Assets Under Management $1.19 B

The market value of total assets that a fund has accumulated and now manages on behalf of investors.

Average Daily $ Volume $9.81 M

It is the daily dollar value of shares traded, averaged over the past 45 trading days.

(60-Day) | The difference between the highest price a market participant is willing to pay to buy an ETF and the lowest price at which a market participant is willing to sell an ETF, averaged over the past 60 days, as a percent." href="javascript:void(0)" class="term">Average Spread (60-Day) 0.04%

The difference between the highest price a market participant is willing to pay to buy an ETF and the lowest price at which a market participant is willing to sell an ETF, averaged over the past 60 days, as a percent.

SCHZ Portfolio Data

Duration 5.3

Price sensitivity in percentage to a 100 basis point parallel shift (up or down) in interest rates.

Weighted Avg. Maturity 7.0 Years

The weighted average of remaining time until maturity for all securities in the portfolio.

Yield to Maturity 2.27%

The weighted average yield if all securities in the portfolio were held until maturity. Assumes that interest can be reinvested at YTM rate.

Next Ex-Dividend Date 12/29/14

The date on which a security's price excludes an upcoming dividend.

Number of Holdings 1,931

The number of securities held in the fund as of ETF.com’s analysis date, based on issuer portfolios or the creation basket. If an ETF holds other ETFs, we count every constituent, looking through the ETF wrapper.

SCHZ Index Data

Index Tracked Barclays U.S. Aggregate Index

This is the benchmark an ETF is desigend to track or replicate.

Index Weighting Methodology Market Value

A set of rules that the underlying index provider follows to weight its constituent securities.

Index Selection Methodology Market Value

A set of rules that the underlying index provider follows to select its constituent securities.

Segment Benchmark Barclays U.S. Aggregate Index

This is the index that we have chosen as the best-in-class gauge for each segment's broad market.

Related ETFs to SCHZ

Top Competing ETFs AGG, BND, LAG

ETFs from within the same segment or closely related segments with similar investment objectives or market exposures.

SCHZ ETF.com Efficiency Insight

SCHZ’s tiny expense ratio is among the lowest in the segment. While the fund doesn’t have the lofty asset total of its peers, it has more than enough to keep it safe from closure. SCHZ has improved its tracking performance. Its tracking difference is in-line with its expense ratio and tracking volatility that is at segment average. (Insight updated 09/30/2014)

Total Return - 09/30/2014

Performance [as of 09/30/14]
1 Month
3 Month
YTD
1 Year
3 Years
5 Years
10 Years

SCHZ
-0.52% 0.26% 4.35% 3.97% 2.25% -- --

SCHZ (NAV)
-0.67% 0.17% 4.13% 3.91% 2.29% -- --

Barclays U.S. Aggregate Index
-0.68% 0.17% 4.10% 3.96% 2.43% 4.12% 4.62%

Barclays U.S. Aggregate Index
-0.68% 0.17% 4.10% 3.96% 2.43% 4.12% 4.62%
All returns over 1 year are annualized. All returns are total returns unless otherwise stated.

SCHZ Portfolio Management

Expense Ratio 0.06%

The net total annual fee a fund holder pays to the issuer.

(12 Mo) | Compares returns of the fund's NAV to its underlying index for a daily series of overlapping 12 month periods. The median is the middle value of the results." href="javascript:void(0)" class="term">Median Tracking Difference (12 Mo) -0.07%

Compares returns of the fund's NAV to its underlying index for a daily series of overlapping 12 month periods. The median is the middle value of the results.

SCHZ Tax exposures

Max LT/ST Capital Gains Rate 20.00% / 39.60%

The maximum long-term and short-term U.S. tax rates applicable to a realized capital gain.

Tax on Distributions N/A

IRS treatment of the majority of the fund's distributions.

Distributes K1 No

ETFs that are structured as commodities pools and classified as limited partnerships by the IRS will issue K-1 forms to holders.

SCHZ Fund Structure

Legal Structure Open-Ended Fund

The organizational structure of the fund or ETN.

OTC Derivative Use No

An indicator of whether a fund uses over-the-counter derivatives such as swaps or forwards to achieve its objectives.

Securities Lending Active No

An indicator of whether or not a fund actively lends its portfolio holdings.

ETN Counterparty N/A

The institution responsible for providing the return of the stated index and whose credit is the sole backing of the ETN.

ETN Counterparty Risk N/A

The risk of default by the ETN counterparty.

Fund Closure Risk Low

The likelihood that an issuer will shut down a fund for business or regulatory reasons.

Portfolio Disclosure Daily

The frequency of an issuer's disclosure of all fund holdings.

SCHZ ETF.com Tradability Insight

SCHZ’s spreads and median daily volume make it a viable option for buy-and-hold investors. However, it's still a bit pricier than competitors AGG and BND. Thus, active traders would be better served by other options in the segment. SCHZ’s underlying market is liquid enough to accommodate multiple creations/redemptions. (Insight updated 09/30/2014)

Average Spread

Premium/Discount

Volume

SCHZ ETF.com/ Block LiquidityAs of 12/19/2014

5
4
3
2
1

This measurement shows how easy it is to trade 25,000 shares of SCHZ. SCHZ is rated a 4 out of 5.

SCHZ Tradability

Avg. Daily Share Volume 187,989

It is the daily number of shares traded, averaged over the past 45 trading days.

Average Daily $ Volume $9.81 M

It is the daily dollar value of shares traded, averaged over the past 45 trading days.

Median Daily Share Volume 163,079

Median number of shares traded over the past 45 trading days.

(%) | The difference between the highest price a market participant is willing to pay to buy an ETF and the lowest price at which a market participant is willing to sell an ETF, averaged over the past 45 days, as a percent." href="javascript:void(0)" class="term">Average Spread (%) 0.04%

The difference between the highest price a market participant is willing to pay to buy an ETF and the lowest price at which a market participant is willing to sell an ETF, averaged over the past 45 days, as a percent.

($) | The difference between the highest and lowest posted prices for an ETF, averaged over the past 45 days, in dollars." href="javascript:void(0)" class="term">Average Spread ($) $0.02

The difference between the highest and lowest posted prices for an ETF, averaged over the past 45 days, in dollars.

(12 Mo) | The greatest amount that the market price exceeded (premium) and fell below (discount) its fair value/net asset value (NAV) over a maximum 12-month period." href="javascript:void(0)" class="term">Max. Premium / Discount (12 Mo) 0.35% / -0.12%

The greatest amount that the market price exceeded (premium) and fell below (discount) its fair value/net asset value (NAV) over a maximum 12-month period.

Impediment to Creations None

This flags whether there is currently a systemic issue that has restricted the ability to create or redeem shares of the fund. This may be imposed by the fund's issuer, or by external circumstances.

Market Hours Overlap 100.00%

The percent of time that the underlying securities of an ETF are open to trading while US exchanges are open.

(Shares) | The smallest block of ETF shares that an Authorized Participant can either create or redeem at net asset value (NAV) with the issuer in exchange for the underlying shares of the fund." href="javascript:void(0)" class="term">Creation Unit Size (Shares) 200,000

The smallest block of ETF shares that an Authorized Participant can either create or redeem at net asset value (NAV) with the issuer in exchange for the underlying shares of the fund.

(45 Day Average) | The median 45 day share volume divided by the creation unit size of the fund. The higher the number, the more likely that liquidity providers will trade the fund in size, or in odd lots." href="javascript:void(0)" class="term">Creation Unit/Day (45 Day Average) 0.82

The median 45 day share volume divided by the creation unit size of the fund. The higher the number, the more likely that liquidity providers will trade the fund in size, or in odd lots.

(%) | The standard fee to create or redeem 1 creation unit of an ETF as a percentage of the dollar value of 1 creation unit." href="javascript:void(0)" class="term">Creation Unit Cost (%) 0.00%

The standard fee to create or redeem 1 creation unit of an ETF as a percentage of the dollar value of 1 creation unit.

Open Interest on ETF Options --

The total number of net outstanding options contracts for an ETF.

ETF.com Implied Liquidity 4

An estimate of liquidity for the underlying baskets of securities, scaled 1 to 5.

SCHZ ETF.com Fit Insight

SCHZ matches the broad market well. The fund also has a slightly different maturity distribution than our benchmark. With a slight overweighting to the 3-5 year pocket, SCHZ has slightly shorter portfolio maturity and duration. On the whole, these differences don't have a significant impact on the fund's ability to deliver marketlike performance. (Insight updated 09/30/2014)

SCHZ Sector/Industry Breakdown

Sector SCHZ Segment Benchmark
Treasury 35.52% 34.50%

MBS Pass-throughs 29.09% 30.62%

Corporate 23.36% 22.92%

Non-Corporate 5.91% 6.00%

Agency 3.55% 3.46%

CMBS 2.04% 2.00%

ABS 0.51% 0.50%

Revenue 0.02% 0.00%

SCHZ Top 5 Countries

United States 90.06% 90.75%

Supranational 1.61% 1.58%

Canada 1.50% 1.53%

United Kingdom 1.06% 1.04%

Germany 0.81% 0.74%

SCHZ Top 5 Currencies

USD 100.00% 100.00%

Developed Market Currencies 100.00% 100.00%

SCHZ Performance Statistics

Beta 1.00

The sensitivity of the returns of the fund to the movement of the ETF.com segment benchmark. Beta of 1.0 means magnitude of fund returns equals that of IU benchmark returns.

Up Beta 1.00

The comparison of a fund's return to our benchmark's for days when the benchmark is up. Ideally down beta is less than up beta while beta of 1.0 means they're equal.

Down Beta 1.00

The comparison of a fund's return to our benchmark's for days when the benchmark is down. Ideally down beta is less than up beta while beta of 1.0 means they're equal.

Downside Standard Deviation 0.00%

A measure of the variability between the fund's returns and the ETF.com segment benchmark returns on days when the fund underperforms the benchmark.

SCHZ Holdings Statistics

Sector SCHZ Segment Benchmark
Weighted Avg. Maturity 7.15 7.00

The weighted average of remaining time until maturity for all securities in the portfolio.

Effective Duration 5.37 5.30

A measure of interest rate risk. Estimates change in value to the portfolio based on a 1% parallel shift in the yield curve.

(2 year) | A measure of interest rate risk. Estimates the portfolio's sensitivity to changes in 2 year interest rates holding other rates constant." href="javascript:void(0)" class="term">Key Rate Duration (2 year) 0.32 0.32

A measure of interest rate risk. Estimates the portfolio's sensitivity to changes in 2 year interest rates holding other rates constant.

(10 year) | A measure of interest rate risk. Estimates the portfolio's sensitivity to changes in 10 year interest rates holding other rates constant." href="javascript:void(0)" class="term">Key Rate Duration (10 year) 2.68 2.63

A measure of interest rate risk. Estimates the portfolio's sensitivity to changes in 10 year interest rates holding other rates constant.

Yield to Maturity 2.28% 2.27%

The weighted average yield if all securities in the portfolio were held until maturity. Assumes that interest can be reinvested at YTM rate.

Credit Spread Duration 3.61 3.63

Price sensitivity in percentage to a 100 basis point change (widening or narrowing) of spread relative to Treasury spot curve.

Concentration Low Low

The Herfindahl Index number – a metric of portfolio concentration where higher numbers mean higher concentration of holdings.

Number of Holdings 8,858 1,931

The number of securities held in the fund as of ETF.com’s analysis date, based on issuer portfolios or the creation basket. If an ETF holds other ETFs, we count every constituent, looking through the ETF wrapper.

Weighted Avg. Credit A+ A+

Market–value–weighted average credit quality of the portfolio.

SCHZ Maturity Distribution

0 - 1 Year 0.01% 0.26%

Percent of the portfolio's exposure to securities with 0 - 1 years until maturity.

1 - 3 Years 24.48% 24.37%

Percent of the portfolio's exposure to securities with 1 - 3 years until maturity.

3 - 5 Years 24.80% 26.98%

Percent of the portfolio's exposure to securities with 3 - 5 years until maturity.

5 - 7 Years 27.66% 25.43%

Percent of the portfolio's exposure to securities with 5 - 7 years until maturity.

7 - 10 Years 9.71% 9.95%

Percent of the portfolio's exposure to securities with 7 - 10 years until maturity

10+ Years 13.34% 13.01%

Percent of the portfolio's exposure to securities with 10+ years until maturity.

SCHZ Credit Breakdown

AAA 72.70% 73.53%

Percent of portfolio's exposure to AAA rated bonds (Investment Grade).

AA 3.81% 3.36%

Percent of portfolio's exposure to AA rated bonds (Investment Grade).

A 11.56% 9.11%

Percent of portfolio's exposure to A rated bonds (Investment Grade).

BBB 11.93% 14.00%

Percent of portfolio's exposure to BBB rated bonds (Investment Grade).

BB 0.00% 0.01%

Percent of portfolio's exposure to BB rated bonds (High Yield).

B 0.00% 0.00%

Percent of portfolio's exposure to B rated bonds (High Yield).

CCC 0.00% 0.00%

Percent of portfolio's exposure to CCC rated bonds (High Yield).

CC 0.00% 0.00%

Percent of portfolio's exposure to CC rated bonds (High Yield).

C 0.00% 0.00%

Percent of portfolio's exposure to C rated bonds (High Yield).