Company History

For 40 years, The Charles Schwab Corporation has been an advocate for individual investors and the financial professionals who serve them.

1973-1986: Leading an investor revolution

With the May 1, 1975, deregulation of brokerage commissions, Chuck Schwab emerges as the de facto leader of a revolution. In a little more than a decade, his company defies conventional wisdom by opening nearly 100 branches, offering 24-hour-a-day quotes, and even exploring online services. The company becomes “America’s Largest Discount Broker,” and later a subsidiary of Bank of America.

1963     Chuck Schwab and two other partners launch Investment Indicator, an investment advisory newsletter. At its height, the newsletter had 3,000 subscribers, each paying $84 a year to subscribe.

1971     In April, the firm is incorporated in California as First Commander Corporation, a wholly-owned subsidiary of Commander Industries, Inc., to conduct a conventional broker-dealer securities business and publish the Schwab investment newsletter.

1972     Chuck Schwab buys all stock from what was once Commander Industries.

1973     The corporate name changes to Charles Schwab & Co., Inc.

1974     In April, the SEC mandates a 13-month trial period for the deregulation of certain brokerage transactions.

1975     On May 1, The SEC mandates negotiated commission rates for all securities transactions. While many brokerages take the opportunity to raise commissions, Chuck seizes the opportunity to create a new kind of brokerage — a discount brokerage. In September, Schwab opens its first branch in Sacramento, CA.

1977     Schwab opens an office in Seattle — the first branch outside of California — and begins offering seminars for customers.

1978     Schwab extends service hours for customer service and quotes from 5:30 a.m. to 9:00 PST, an industry first.

1979     In a "bet-the-company" move, Schwab invests in the BETA mainframe system. The success of this automated transaction and record-keeping system demonstrates that technology can be a key growth driver.

1980     Schwab establishes the industry’s first 24-hour quotation service.

1981     Schwab becomes a member of the NYSE. The firm opens its first location in Manhattan. Larry Stupski is named President and COO of the firm.

1982     Schwab is the first to offer 24-hour, 7-day-a-week order entry and quote service. The company’s first international office opens in Hong Kong. The IRA account is introduced.

1983     Bank of America acquires the firm for $55 million. Schwab introduces the new Schwab One® brokerage account.

1984     Schwab introduces Mutual Fund MarketPlace® with 140 no-load funds. The company launches SchwabQuotes® and introduces The Equalizer®, a DOS-based technology solution that points the way toward an online future.

1985     In August, Schwab records its 1-millionth client account. By year-end, client accounts reach 1.2 million with client assets of $7.6 billion.

1986     Schwab becomes the first to allow clients to place mutual fund buy or sell orders 24 hours a day, 7 days a week.

1987-1994: Expanding service and access

True to his independent roots, Chuck Schwab buys the company back from Bank of America and, two months later, takes it public. A market crash and catastrophic earthquake shake the San Francisco-based firm, but Schwab still manages to launch services for independent financial advisors, the Schwab 1000 Fund®, the No-Fee IRA, Schwab Mutual Fund OneSource© service and online trading.

1987     In March, management leads a buyback from Bank of America for $280 million. In September, The Charles Schwab Corporation completes its initial public offering. In October, the market crashes and the Dow Jones Industrial Average loses 500 points. During the year, Schwab launches Financial Advisors Service to serve independent investment advisors.

1988     Financial Advisors Service exceeds $1 billion in client assets after just one year of business.

1989     Schwab introduces TeleBroker®, an automated technology for telephone brokerage service.

1990     The company introduces Schwab Funds® money market mutual funds. The Indianapolis service center opens as the first customer telephone service center outside of San Francisco. The first Asia Pacific center opens with bilingual services.

1991     The company introduces the Schwab 1000 Fund, an equity index fund that reaches $191 million in client assets by year-end. Schwab hosts the first annual National Financial Advisors Conference, later renamed IMPACT®. Schwab debuts its first network TV advertising campaign. 

1992     Charles Schwab Trust Company® is created. The company introduces no-annual-fee IRA and the Schwab Mutual Fund OneSource1 service, which offers one-stop-shopping for mutual funds from multiple fund families.

1993     Charles Schwab Limited opens its first office in London. Employees move into a new Orlando service center.

1994     Spanish-language TeleBroker® service is introduced. Total client assets rise above $100 billion mark to $122.6 billion at year-end.

1995-2000: Clicking with online investing

The Internet era begins. Schwab.com launches online trading during a historic bull market, and the combination fuels tremendous growth in client assets. During this period, Schwab continues to diversify by launching a bundled 401(k) plan and expanding internationally. The firm also reshapes its core brokerage business as it begins to offer financial advice.

1995     Schwab activates its first website at Schwab.com®. The company acquires U.K.-based discount broker ShareLink and 401(k) plan recordkeeper the Hampton Company, founded by Walter W. Bettinger II.

1996     Web trading goes live. Customers can trade listed and OTC stocks or check balances and the status of orders. The SchwabPlan is introduced, offering companies and their employees access to more than 1,300 mutual funds in a new, bundled 401(k) product. Schwab AdvisorSource® referral service is introduced nationally.

1997     The Charles Schwab Corporation is added to S&P 500 Index. The website registers its 1 millionth online account. Schwab’s Hong Kong office reopens after being closed since the 1987 market crash. Mutual Fund Report Card is introduced with a single-page review of more than 7,700 mutual funds. In December, David Pottruck is named co-CEO of the corporation.

1998     Two Canadian brokerages are acquired to create Charles Schwab Canada. Online accounts reach 2 million. TeleBroker adds voice technology.

1999     Schwab launches after-hours trading for Nasdaq and select listed stocks, with orders accepted online or by phone from 4:30 p.m. to 7:00 p.m. EST Monday through Friday. Schwab launches eConfirms, a new e-mail subscription service that delivers trade confirmations directly to customers, eliminating paper delivery. Schwab becomes the first online brokerage to offer multiple stock order entry for all online trading accounts. The firm also introduces two new web-based tools including Schwab's advanced mutual fund screener, which allows customers to screen all funds rated by Morningstar, Inc. The Schwab Fund for Charitable Giving2, an independent public philanthropic fund, is launched.

2000     Schwab and U.S. Trust merge. The company also acquires CyBerCorp, Inc. to better serve active on-line traders. Schwab introduces pre-market trading for most Nasdaq and listed securities, with orders accepted from 7:45 a.m. to 9:15 a.m. (Eastern time) Monday through Friday. PocketBroker™ wireless investing service is introduced. Schwab Mutual Fund OneSource tops $100 billion in assets.

2001-2007: Banking on added value

The dot-com bubble bursts, and so does Schwab’s unsustainable cost structure. After CEO Dave Pottruck resigns, Chuck returns to lead the firm. Through acquisition and organic growth, the corporation introduces new products and services for three distinct client segments – individual investors, independent advisors and company plan sponsors – and expands offerings with the launch of Charles Schwab Bank®.

2001     CyBerCorp, Inc. changes its name to Cyber Trader® Inc. and enhances its service with improved software, educational tools and tiered pricing.

2002     Schwab launches an alternative for investment research, Schwab Equity Ratings®, and two new advisory services for affluent investors, Schwab Private Client® and Schwab Advisor Network®3. Schwab Core Equity Fund and Schwab Hedged Equity Fund are introduced, with both using the Schwab Equity Ratings model. Schwab Advisor WebCenter™ launches, an advisor-branded website development and hosting service for independent investment advisors working with Schwab Institutional®.

2003     Charles Schwab Bank launches. Schwab Small-Cap Equity Fund is introduced.

2004     Schwab announces the dual listing of its common stock on Nasdaq and NYSE; later in the year, Schwab sells its seat on the NYSE. Schwab announces the resignation of David S. Pottruck as CEO and the reinstatement of Chuck Schwab as CEO. Schwab and AXA Rosenberg complete a fund adoption agreement and introduce a new group of mutual funds, the Laudus Group4, renamed the Laudus Rosenberg Funds. Schwab and Boys & Girls Clubs of America launch a new program —Money Matters: Make It Count — to teach money management to teens.

2005     Schwab eliminates account service and order handling fees5 for retail accounts and small business retirement plans. Schwab Equity Ratings  inspire the launch of the Schwab Premier Equity Fund™and new Schwab Portfolios™. The company gives all clients access to Schwab Equity Ratings. Charles Schwab Bank and Charles Schwab & Co., Inc. introduce linked checking and brokerage accounts. Schwab rolls out its family of mutual funds onto third-party mutual fund platforms and introduces target funds to help simplify retirement. The company makes the move to list its stock solely on the Nasdaq exchange. Schwab launches a new ad campaign: Talk To Chuck™.

2006     Schwab lowers and simplifies pricing for equity, option, mutual fund and bond transactions. The firm announces a security guarantee6, covering 100 percent of account losses in any Schwab account arising from unauthorized account activity. In November, the corporation announces an agreement to sell U.S. Trust, its wealth management subsidiary, to Bank of America. In new product news, the company launches Schwab Managed Portfolios™7, offering professional money management for individuals with as little as $50,000 to invest; the Schwab Inflation Protected Fund™, a fund designed to offer protection from inflation while providing growth; and the Laudus Rosenberg International Discovery Fund. Schwab Charitable Fund™ surpasses $1 billion in charitable contributions. At the annual IMPACT conference, Schwab Institutional announces the winners of the first IMPACT Awards™.

2007     The corporation completes the acquisition of The 401(k) Company, a retirement plan provider in Austin, TX, and Charles Schwab Investment Management completes the acquisition of Global Real Analytics, LLC (GRA). Charles Schwab Bank introduces the High Yield Investor Checking®8 account. Joseph R. Martinetto succeeds Christopher Dodds as Chief Financial Officer, and Walter R. Bettinger II is named President and Chief Operating Officer.

2008-Now: Innovating on behalf of clients

With the markets in crisis, the company focuses on what it does best – innovating on behalf of clients. Schwab goes mobile and to the cloud, Exchange Traded Funds explode in popularity, and money management capabilities grow. By the end of 2012, client assets have grown to $2 trillion.

2008     The company enhances Schwab.com, improves StreetSmart Pro, upgrades risk management tools on StreetSmart.com, and launches an online community focused on active trading. Walter W. Bettinger II is appointed President and Chief Executive Officer and a member of the board of directors effective Oct. 1, 2008.

2009     Schwab introduces Real Life Retirement™ Services with practical tools and resources for those nearing retirement. Charles Schwab Bank launches the Schwab Bank High Yield Investor Savings™ account. The firm cuts fees on its equity index funds and adds a new large-cap growth fund to its Laudus funds lineup. Schwab offers first exchange traded funds (ETFs) that trade commission-free online at Schwab.com.9

2010     Schwab announces reductions in online equity trade commissions designed to provide greater value for investors, regardless of the frequency or size of their trades. The Charles Schwab Corporation lists shares on the New York Stock Exchange (NYSE). Charles Schwab and J.P. Morgan join forces in fixed income. Schwab reduces fees on six proprietary exchange traded funds and introduces three low-cost bond ETFs. Schwab completes the acquisition of Windward Investment Management, Inc., renamed Windhaven. Schwab launches mobile apps for smartphone users.

2011     Schwab launches a new platform for active traders, StreetSmart Edge®10, designed to simplify complex trading activities and provide a more intuitive experience. Schwab announces mobile deposit capabilities11 for smartphone users, enabling Schwab brokerage and Schwab Bank clients to deposit checks remotely by taking a picture of a check with their smartphone cameras. Schwab launches a new program called Clients Speak12, which features online ratings and reviews by clients on their Schwab accounts or their experience with the company. The Charles Schwab Corporation acquires optionsXpress Holdings, Inc. and Compliance11™. Schwab Independent Branch Services opens the first independent branch in Nashua, N.H.

2012     New products and services include: Schwab Index Advantage®, a one-of-a-kind 401(k) plan offer from Retirement Plan Services; Schwab Bill Pay™ and Schwab Advisor Center™ for Schwab Mobile apps; Schwab Global Account™ with 24/7 online access to 12 foreign equity markets13; the Idea Hub™ idea-generation tool and the Walk Limit™ tool from optionsXpress; and StreetSmart Edge Platform in the Cloud. Schwab also announces an agreement with Piper Jaffray to expand access to new-issue municipal bonds through the Schwab BondSource® platform, and completes the acquisition of ThomasPartners, Inc., a dividend income-focused asset management firm. At year-end, total client assets exceed $2 trillion.

2013     Schwab ETF OneSource™ platform launches, featuring commission-free trades on ETFs from most of the major ETF providers14. Schwab also expands options for funding retirement income with the launch of Schwab Retirement Income Variable Annuity™15. Schwab Performance Technologies® (SPT)17 launches PortfolioCenter Hosted®, a new solution for independent registered investment advisors. Charles Schwab & Co., Inc. opens select branches on Saturdays to offer convenient access to investing services. In June, new advertising debuts with the theme “Own Your Tomorrow™.” Schwab announced its Accountability Guarantee for clients enrolled in participating investment advisory services. Now these clients can receive a complete refund of their program fees from the prior quarter if, for any reason, they are not happy with the service they’ve received. For more information, please see www.schwab.com/accountability.

2014     Schwab Retirement Plan Services is the first to launch an innovative 401(k) program based on low-cost exchange-traded funds16. Schwab Performance Technologies® (SPT)17 rolls out Schwab OpenView Mobile, a customizable app that RIAs can use to create a turnkey, branded mobile presence for their firms. Schwab Bank cuts expense ratios in its target date collective trust funds for large retirement plans. Charles Schwab Investment Management, Inc. (CSIM) expands its index mutual fund lineup with the launch of the Schwab Fundamental Global Real Estate Index Fund (SFREX), which tracks the Russell Fundamental Global Select Real Estate Index.18 Schwab opens the doors of its new 650,000-square-foot, 47-acre Ridgegate campus and retail branch located in Lone Tree, CO.  

2015     Schwab ETF OneSource™ expands to over 200 commission-free ETFs14 on its platform. Schwab Intelligent Portfolios™ 19, an automated investment advisory service, is launched and offered through Schwab Wealth Investment Advisory, Inc. Schwab Intelligent Portfolios uses sophisticated computer algorithms to build, monitor, and rebalance diversified portfolios based on an investors stated goals. Schwab introduces the Apple WatchTM app20 that works seamlessly with the Schwab Mobile app on your iPhone® for an enhanced mobile client experience and also reduced fees in the Schwab 529 College Savings Plan.21 Schwab announced launch of Institutional Intelligent Portfolios™22, an automated investment management platform designed specifically for RIAs and sponsored by Schwab Wealth Investment Advisory, Inc. Schwab announced the re-launch of SchwabSafe™, an online resource with perspectives and tips on cyber security for clients. Schwab Retirement Plan Services introduces advisor managed accounts for 401(k) plans, which leverages Morningstar managed account technology and enables advisors  to build customized investment portfolios for retirement plans they advise.23  Schwab reduces minimums on many Mutual Fund OneSource funds to $100 from $2,500 and the minimum for subsequent investments fall to $1.

2016     Schwab Target Index Funds – a new series of index-based target date mutual funds constructed with low-cost Schwab ETFs™ as underlying investments launched and is available to employer-sponsored retirement plans of all sizes.24 Schwab Advisor Services announced availability of a robust suite of resources and tools to help independent financial advisors develop, strengthen and maintain their cybersecurity defense. The program includes information to help advisors stay up-to-date on cyber-attack trends, regulatory developments and best practices for educating employees and clients on keeping data secure. Schwab announced new features and enhancements to Institutional Intelligent Portfolios — the automated investment management platform designed specifically for independent advisors and sponsored by Schwab Wealth Investment Advisory, Inc.  Schwab announced the launch of Schwab Intelligent Advisory™ 25, a hybrid advisory service that combines live credentialed professionals and algorithm driven technology to make financial and investment planning more accessible to consumers. 

Brokerage Products: Not FDIC Insured   •   No Bank Guarantee   •   May Lose Value
 

Investors should consider carefully information contained in the prospectus, including investment objectives, risks, charges, and expenses. You can request a prospectus by calling 800-435-4000. Please read the prospectus carefully before investing.
 

Variable annuities are sold by prospectus only. You can request a prospectus by calling 1-888-311-4887 or by visiting schwab.com/annuity. Before purchasing a variable annuity, you should carefully read the prospectus and consider the investment objectives and all risks, charges, and expenses associated with the annuity and its investment options.
 

Money market funds are neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of a money market investment at $1.00 per share, it is possible to lose money by investing in the fund.

The values of target date funds will fluctuate up to and after the target dates. There is no guarantee the funds will provide adequate income at or through retirement. Target date fund asset allocations are subject to change over time in accordance with each fund’s prospectus.
 
Charles Schwab & Co., Inc., Charles Schwab Bank, optionsXpress, Inc., Compliance11, Inc., and Schwab Performance Technologies are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation. Brokerage products are offered by Charles Schwab & Co., Inc. (Member SIPC) ("Schwab") and optionsXpress, Inc. (Member SIPC) ("optionsXpress"). Schwab Advisor Services™ serves independent investment advisors and includes the custody, trading and support services of Schwab. Deposit and lending products and services are offered by Charles Schwab Bank, Member FDIC and Equal Housing Lender ("Schwab Bank"). Charles Schwab & Co., Inc. does not solicit, offer, endorse, negotiate, or originate any mortgage loan products and is neither a licensed mortgage broker nor a licensed mortgage lender. Windhaven Investment Management, Inc. ("Windhaven") and Thomas Partners, Inc. are registered investment advisor advisors and affiliates of Charles Schwab & Co., Inc.. Charles Schwab Investment Management, Inc. (CSIM) is an affiliate of Charles Schwab & Co., Inc.
 

1  Schwab’s short-term redemption fee of $49.95 will be charged on redemption of funds held for 90 days or less. Schwab reserves the right to exempt certain funds from this fee. Trades in no-load mutual funds available through the Mutual Fund OneSource service (including Schwab Funds), are available without transaction fees when placed through Schwab.com or our automated phone channels. For trade orders placed through a broker, a $25 service charge applies. Schwab reserves the right to change the funds we make available without transaction fees and to reinstate fees on any funds.

Charles Schwab & Co., Inc receives remuneration from fund companies participating in the Mutual Fund OneSource service for recordkeeping and shareholder services and other administrative services.

2    Schwab Charitable Fund is an independent nonprofit organization that has entered into service agreements with certain affiliates of The Charles Schwab Corporation.

3    Advisors are independent and are not employees or agents of Charles Schwab & Co., Inc. Schwab selects advisors and checks their experience and credentials against criteria Schwab sets, such as years of experience managing investments, amount of assets managed, professional education, regulatory licensing, and business relationship as a client of Schwab. Advisors pay fees to Schwab in connection with referrals. Schwab does not supervise advisors and does not prepare, verify, or endorse information distributed by advisors. Investors must decide whether to hire an advisor and what authority to give him/her. Investors, not Schwab, are responsible for monitoring and evaluating an advisor’s service, performance, and account transactions.

4    The Laudus Group® of Funds includes the Laudus Mondrian and Laudus Growth Investors Funds, which are part of the LaudusTrust and Laudus Institutional Trust and distributed by ALPS Distributors, Inc; and the Laudus MarketMasters Funds®, which are part of the Schwab CapitalTrust and distributed by Charles Schwab Investment Management, Inc. ALPS Distributors, Inc. and Charles Schwab Investment Management, Inc. are unaffiliated entities.

5   There is no fee to open and maintain your account. Other charges may apply. See the pricing guide for details.

6   Conditions apply. Please see schwab.com/guarantee.

7    Portfolio Management provided by Charles Schwab Investment Advisory, Inc. ("CSIA"), an affiliate of Charles Schwab & Co., Inc.

8   Schwab Bank High Yield Investor Checking accounts are available only as linked accounts with Schwab One® accounts. The Schwab One brokerage account has no minimum balance requirements, and there is no requirement to fund this account when it is opened with a linked High Yield Investor Checking account.

9    Restrictions Apply: Online trades of Schwab ETFs are commission-free at Charles Schwab & Co., Inc. while trades of third-party ETFs may be subject to commissions. Broker-Assisted and Automated Phone trades are subject to service charges. Waivers may apply. See the Charles Schwab Pricing Guide for details. Conditions Apply: Trades in ETFs available through Schwab ETF OneSource™ (including Schwab ETFs™) are available without commissions when placed online in a Schwab account. Service charges apply for trade orders placed through a broker ($25) or by automated phone ($5). An exchange processing fee applies to sell transactions. Certain types of Schwab ETF OneSource transactions are not eligible for the commission waiver, such as short sells and buys to cover (not including Schwab ETFs). Schwab reserves the right to change the ETFs we make available without commissions. All ETFs are subject to management fees and expenses. Please see pricing guide for additional information.

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 are bought and sold at market price, which may be higher or lower than the net asset value (NAV).

Schwab ETFs are distributed by SEI Investments Distribution Co. (SIDCO). SIDCO is not affiliated with Charles Schwab & Co., Inc. Learn more at schwab.com/SchwabETFs.

10     Schwab's StreetSmart Edge® is available for Schwab Active Trading clients. Access to NASDAQ TotalView® is provided for free to non-professional clients who have made 120 or more equity and/or options trades in the last 12 months, 30 or more equity and/or options trades in either the current or previous quarters, or maintain $1 million or more in household balances at Schwab. Schwab Active Trading clients who do not meet these requirements can subscribe to NASDAQ TotalView for a quarterly fee. Professional clients may be required to meet additional criteria before obtaining a subscription to NASDAQ TotalView. This offer may be subject to additional restrictions or fees, and may be changed at any time.

11     Schwab Mobile Deposit service is subject to certain eligibility requirements, limitations, and other conditions. Enrollment is not guaranteed and standard hold policies apply. Requires a wireless signal or mobile connection.

12     Ratings and opinions expressed by clients are not meant to suggest future performance or the suitability of any account type, product, or service for any particular client and may not be representative of the experience of other clients. Schwab cannot guarantee the accuracy of the information included in client reviews. Please see reviews.schwab.com/1022/allreviews.htm for the most current ratings information and details surrounding calculation of the average rating scores and Publishing Guidelines.

13     International investments involve additional risks, which include differences in financial accounting standards, currency fluctuations, geopolitical risk, foreign taxes and regulations, and the potential for illiquid markets. Investing in emerging markets may accentuate these risks.

14     Conditions Apply: Trades in ETFs available through Schwab ETF OneSource™ (including Schwab ETFs™) are available without commissions when placed online in a Schwab account. Service charges apply for trade orders placed through a broker ($25) or by automated phone ($5). An exchange processing fee applies to sell transactions. Certain types of Schwab ETF OneSource transactions are not eligible for the commission waiver, such as short sells and buys to cover (not including Schwab ETFs). Schwab reserves the right to change the ETFs we make available without commissions. All ETFs are subject to management fees and expenses. Please see Charles Schwab Pricing Guide for additional information.

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 are bought and sold at market price, which may be higher or lower than the net asset value (NAV).

Charles Schwab & Co., Inc. receives remuneration from third-party ETF companies participating in Schwab ETF OneSource™ for recordkeeping, shareholder services and other administrative services, including program development and maintenance.

Schwab ETFs are distributed by SEI Investments Distribution Co. (SIDCO). SIDCO is not affiliated with Charles Schwab & Co., Inc. Learn more at schwab.com/SchwabETFs.

15     The Schwab Retirement Income Variable annuity is issued by Pacific Life Insurance Company in all states except New York and in New York by Pacific Life & Annuity Company. The contracts are sold exclusively by Charles Schwab & Co., Inc.  through its representatives including both employees and independent contractors and their employees (“Schwab Financial Consultants”). Charles Schwab Investment Management, Inc. (CSIM) is the adviser for the underlying investment options.

Charles Schwab & Co., Inc. and Charles Schwab Investment Management, Inc. are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation and are not affiliated with Pacific Life Insurance Company or Pacific Life and Pacific Life & Annuity Company.

16     Based on operating expenses which are generally lower for ETFs than for actively managed mutual funds.  Operating expenses represent the total of all a fund’s annual fund operating expenses. Management fees are but one component of the fund operating expenses. Remember that cost is only one consideration when making an investment decision. An investor may give up the opportunity to outperform the market by not being in an actively managed fund.”

Conditions Apply: Trades in ETFs available through Schwab ETF OneSource™ (including Schwab ETFs™) are available without commissions when placed online in a Schwab account. Service charges apply for trade orders placed through a broker ($25) or by automated phone ($5). An exchange processing fee applies to sell transactions. Certain types of Schwab ETF OneSource transactions are not eligible for the commission waiver, such as short sells and buys to cover (not including Schwab ETFs). Schwab reserves the right to change the ETFs we make available without commissions. All ETFs are subject to management fees and expenses. Please see Charles Schwab Pricing Guide for additional information.

Charles Schwab & Co., Inc. receives remuneration from third-party ETF companies participating in Schwab ETF OneSource™ for recordkeeping, shareholder services and other administrative services, including program development and maintenance.

Schwab ETFs are distributed by SEI Investments Distribution Co. (SIDCO). SIDCO is not affiliated with Charles Schwab & Co., Inc. Learn more at schwab.com/SchwabETFs.

Schwab Retirement Plan Services, Inc. and Schwab Retirement Plan Services Company (collectively “Schwab Retirement Plan Services”), are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation.

17     PortfolioCenter Hosted and Schwab OpenView Mobile now called Schwab Advisor Mobile Connect, are products of SPT. Schwab Performance Technologies (“SPT”), is a subsidiary of The Charles Schwab Corporation separate from its affiliate Charles Schwab & Co., Inc. (Schwab). Schwab is a registered broker-dealer that provides brokerage services, while SPT licenses software and provides related technology products and services. Independent investment advisors are not owned by, affiliated with or supervised by Schwab or its affiliates.

18      Schwab Bank, Charles Schwab Investment Management Inc. (CSIM), and Charles Schwab & Co., Inc. (“Schwab”) are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation. Schwab Retirement Plan Services provides recordkeeping and related services with respect to retirement plans. Trust and custody products and services are offered by Charles Schwab Bank. CSIM is the Registered Investment Advisor (RIA) that manages Schwab's proprietary funds (Schwab Funds). Schwab Funds are distributed by Schwab.

Index ownership — “Russell Fundamental Global Select Global Index” is a joint trademark of Russell Investments (“Russell”) and Research Affiliates LLC (“RA”) and is used by the fund under license. “Research Affiliates” and “Fundamental Index” are trademarks of RA. Subject to RA’s intellectual property rights in certain content, Russell is the owner of all copyrights related to the Russell Fundamental Indexes. Russell is the owner of the trademarks and copyrights related to the Russell Indexes. Schwab Fundamental US Large Company Index Fund is not sponsored, endorsed, sold or promoted by Russell or RA, and Russell and RA do not make any representation regarding the advisability of investing in shares of the fund.

19     Accounts must maintain a minimum balance of $5,000 to be eligible for automatic rebalancing.

Diversification, automatic investing, and rebalancing strategies do not ensure a profit and do not protect against losses in declining markets.

Schwab Intelligent Portfolios™ is made available through Schwab Wealth Investment Advisory, Inc. (“SWIA”), a registered investment advisor. Portfolio management services are provided by Charles Schwab Investment Advisory (“CSIA”). SWIA and CSIA are affiliates of Charles Schwab & Co., Inc. (“Schwab”) and subsidiaries of The Charles Schwab Corporation.

20     Requires a wireless signal or mobile connection. System availability and response times are subject to market conditions and you mobile connection limitations. Functionality may vary by operating system and/or device.

Apple®, iPhone, and Apple Watch™ are trademarks of Apple Inc., registered in the U.S. and other countries.

21     Before investing in a 529 Plan, carefully consider the plan's investment objectives, risks, charges, and expenses. This information and more about the plan can be found in the Schwab 529 Guide and Participation Agreement available from Charles Schwab & Co., Inc., and should be read carefully before investing. If you are not a Kansas taxpayer, consider before investing whether your or the beneficiary's home state offers a 529 plan that provides its taxpayers with state tax benefits and other benefits not available through this plan. As with any investment, it is possible to lose money by investing in this plan.

The Schwab 529 College Savings Plan is available through Charles Schwab & Co., Inc. and is managed by American Century Investment Management, Inc. The plan was created by the Kansas State Legislature under the provisions of Section 529 of the Internal Revenue Code and is administered by Kansas State Treasurer Ron Estes. Notice: Accounts established under the Schwab 529 College Savings Plan and their earnings are neither insured nor guaranteed by the State of Kansas, the Kansas State Treasurer, American Century Investments®, or Charles Schwab & Co., Inc. Accounts established under the Schwab 529 College Savings Plan are domiciled at American Century Investments and not Schwab.

American Century Investments receives remuneration from fund companies, including PIMCO Funds, American Beacon Advisors, Metropolitan West Management, LLC, and Baron Funds® for recordkeeping, shareholder services, and other administrative services associated with funds held in the Schwab 529 College Savings Plan portfolios.

22     See the Institutional Intelligent PortfoliosTM disclosure brochure for important information.

Institutional Intelligent PortfoliosTM is made available through independent investment advisors and is sponsored by Schwab Wealth Investment Advisory, Inc. (“SWIA”), a registered investment advisor. SWIA is an affiliate of Charles Schwab & Co., Inc. (“CS&Co.”) and a subsidiary of The Charles Schwab Corporation.

23     All advisory services (including the managed account portfolios) are provided by Advisor Firms (“Advisor”) an independent registered investment advisor, using the managed account technology services of Morningstar Associates, LLC (Morningstar), a registered investment advisor and wholly owned subsidiary of Morningstar, Inc. Morningstar is not affiliated with the Advisor. Neither the Advisor Firm nor Morningstar is affiliated with or an agent of Schwab Retirement Plan Services, Inc. (SRPS) or any of its affiliates (collectively Charles Schwab). There is no guarantee a participant's savings and investment strategy will provide adequate income at or through their retirement. Fees are charged by SRPS for the recordkeeping and related services it provides, and fees may also be charged by the Advisor Firm for its provision of the advisory services. Morningstar provides a savings rate recommendation as part of the managed account technology services it provides to the Advisor. For plans that do not include a salary deferral feature, a savings rate recommendation will not be included.

24     Charles Schwab Investment Management, Inc. (“CSIM”), the investment advisor for Schwab’s proprietary funds, and Charles Schwab & Co., Inc. (“Schwab”, Member SIPC), the distributor for Schwab Funds, are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation.

25      Schwab Intelligent Advisory™ is made available through Charles Schwab & Co., Inc. (“Schwab”), a dually registered investment adviser and broker-dealer. Portfolio management services for Schwab Intelligent Portfolios™ are provided by Charles Schwab Investment Advisory, Inc. ("CSIA"), a registered investment adviser. Please refer to the disclosure brochures for details about Schwab Intelligent Advisory. Free credit balances are swept into deposit accounts at Charles Schwab Bank (“Schwab Bank”). Brokerage products and accounts are offered by Schwab, Member SIPC. Deposit and lending products are offered by Schwab Bank, Member FDIC and an Equal Housing Lender. Schwab, CSIA, and Schwab Bank are affiliates and are subsidiaries of The Charles Schwab Corporation.

 

Brokerage Products: Not FDIC Insured • No Bank Guarantee • May Lose Value

Charles Schwab & Co., Inc. is an equal opportunity and affirmative action employer committed to diversifying its workforce. It is Schwab's policy to provide equal employment opportunities to all employees and applicants without regard to race, color, religion, sex (including pregnancy, childbirth, breastfeeding, or related medical conditions), gender identity or expression, national origin, ancestry, age, disability, legally protected medical condition, genetic information, marital status, sexual orientation, protected veteran status, military status, citizenship status or any other status that is protected by law.

The Charles Schwab Corporation provides a full range of securities, brokerage, banking, money management, and financial advisory services through its operating subsidiaries. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (“Schwab”), Member SIPC, offers investment services and products, including Schwab brokerage accounts. Its banking subsidiary, Charles Schwab Bank (member FDIC and an Equal Housing Lender), provides deposit and lending services and products.

Schwab Advisor Services™ serves independent investment advisors and includes the custody, trading, and support services of Schwab. Independent investment advisors are not owned, affiliated with, or supervised by Schwab. Schwab Retirement Plan Services, Inc. provides recordkeeping and related services with respect to retirement plans.

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