Schwab Asset Management announced fee reductions for four equity index exchange-traded funds, effective June 11, 2026. The company will reduce operating expense ratios for the Schwab U.S. Mid-Cap ETF (SCHM), Schwab U.S. Small-Cap ETF (SCHA), Schwab International Small-Cap Equity ETF (SCHC), and Schwab Emerging Markets Equity ETF (SCHE).

SCHM and SCHA will see their expense ratios decrease from 0.04% to 0.03%. SCHC's expense ratio will drop from 0.08% to 0.06%, while SCHE's will fall from 0.07% to 0.06%.

Following these changes, 16 of Schwab Asset Management's 24 market-cap weighted index equity and fixed income ETFs will be priced at 3 basis points. The company positions itself as the fifth-largest ETF provider.

"Schwab is proud to leverage our growth and efficiencies to drive down costs for investors to better help them achieve their investment goals," said Nicohl Bogan, Director of Product Strategy and Development at Schwab Asset Management.

The fee reductions mean investors can construct a diversified U.S. portfolio including large-, mid- and small-cap equities, treasury, corporate and municipal bonds, and REITs using Schwab market cap-weighted index ETFs with expense ratios ranging from 3 to 7 basis points. For a $10,000 investment, annual fund expenses would range from approximately $3 to $7.

An international portfolio including developed markets, emerging markets and international dividend equities would have expense ratios ranging from 3 to 8 basis points, translating to annual expenses of approximately $3 to $8 on a $10,000 investment.

As of March 31, 2026, Schwab Asset Management managed approximately $1.6 trillion on a discretionary basis and $42.5 billion on a non-discretionary basis, according to the press release.