Investors should consider carefully information contained in the prospectus, including investment objectives, risks, charges, and expenses. You can request a prospectus by calling Schwab at 800-435-4000. Please read the prospectus 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 are bought and sold at market price, which may be higher or lower than the net asset value (NAV).

ETF industry macro perspective An ETF Evolution

Follow the flows: asset categories

In 2015, ETF assets at Schwab grew most significantly in the International Equity category. Last year, over $12B flowed into the category, representing over a third of the total ETF flows for the year and an increase of over 350% compared to 2014. In contrast, net asset flows in the U.S. Equity and Sector categories experienced a decrease relative to the prior year. While net flows into U.S. Equity ETFs at Schwab remained strong and positive, they represented only a third of total flows in 2015 compared to 47% of flows in 2014.

Follow the flows: asset categories

Share of ETF Flows at Schwab by asset category

Other
Commodity
Sector
U.S. Fixed Income
International Equity
U.S. Equity

Disclosures

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

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

References to "Schwab" refers to Charles Schwab & Co., Inc.

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).

Please read the Schwab Intelligent Portfolios™ disclosure brochures for important information. 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, Inc. (“CSIA”). SWIA and CSIA are affiliates of Charles Schwab & Co., Inc. (“Schwab”) and subsidiaries of The Charles Schwab Corporation.

Follow the flows: client segments

Follow the flows: client segments

Across all Schwab client segments, the strong growth in ETF assets continued in 2015. Similar to 2014, net flows onto the ETF platform at Schwab represented over 10% of prior year's total ETF assets. Schwab’s two larger segments - Retail Investors and RIA Clients - saw ETF assets grow at a fast clip, while ETF assets of Retail Traders grew at a somewhat lower pace.

ETF Flows at Schwab by category by client segment

Retail Traders
Retail Investors
RIA Clients
Other
Commodity
Sector
U.S. Fixed Income
International Equity
U.S. Equity

Disclosures

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

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

References to "Schwab" refers to Charles Schwab & Co., Inc.

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).

Please read the Schwab Intelligent Portfolios™ disclosure brochures for important information. 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, Inc. (“CSIA”). SWIA and CSIA are affiliates of Charles Schwab & Co., Inc. (“Schwab”) and subsidiaries of The Charles Schwab Corporation.