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relates to Take a Peek on the ECB's 38th Floor as Philip Lane Awaits Role relates to Bond Traders Are About to Get a Big Update on Fed's Portfolio relates to ECB Moves Closer to Global Dovish Shift as Coeure Mulls Loans relates to Emerging Markets Retreat Amid Global Growth Concerns: EM Review relates to Fed Will Probably Change Its Approach to Inflation, Dudley Says relates to Pemex Assistance Plan Fails to Impress Bondholders relates to Hedge Funds See Windfall From Bets on Puerto Rico After Storm relates to Fed’s Clarida Watches a Price Gauge That Just Tied a Record Low relates to Surprise! Refinancing Complex Debt Instruments Is Hard relates to Duterte Signs Bills to Ease Inflation, Boost Central Bank Powers
relates to Take a Peek on the ECB's 38th Floor as Philip Lane Awaits Role relates to Bond Traders Are About to Get a Big Update on Fed's Portfolio relates to ECB Moves Closer to Global Dovish Shift as Coeure Mulls Loans relates to Emerging Markets Retreat Amid Global Growth Concerns: EM Review relates to Fed Will Probably Change Its Approach to Inflation, Dudley Says relates to Pemex Assistance Plan Fails to Impress Bondholders relates to Hedge Funds See Windfall From Bets on Puerto Rico After Storm relates to Fed’s Clarida Watches a Price Gauge That Just Tied a Record Low relates to Surprise! Refinancing Complex Debt Instruments Is Hard
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Schwab Sees ‘Gaps’ in Its Bond ETF Lineup That It Wants to Close

Schwab Sees ‘Gaps’ in Its Bond ETF Lineup That It Wants to Close

  • The asset manager has sold only one new ETF since 2013
  • Four of its 22 ETFs focus on fixed-income securities
Pedestrians pass in front of a Charles Schwab Corp. office building in New York.

Pedestrians pass in front of a Charles Schwab Corp. office building in New York.

Photographer: Gabriella Angotti-Jones/Bloomberg
Pedestrians pass in front of a Charles Schwab Corp. office building in New York.
Photographer: Gabriella Angotti-Jones/Bloomberg

Watch the fixed-income space if you want to see a new exchange-traded fund from Charles Schwab Corp.

The fifth-largest issuer of ETFs in the U.S., which has started just one ETF in the last five years, sees some holes within its lineup of bond strategies, according to Jonathan de St. Paer, president and incoming chief executive of the broker’s asset management arm, Charles Schwab Investment Management.

“We probably have some gaps on the fixed-income side that we are looking closely at,” said de St. Paer, who will replace Marie Chandoha in the top job on April 1. “We have a lot of assets and a lot of growth but our product set has tended to be more equity heavy over time so we want to make sure that we fill that out.”

By making its low cost, broad index funds available to its brokerage clients, the ETF issuer has amassed $127 billion in less than a decade. However, only four of its 22 ETFs currently focus on debt, data compiled by Bloomberg show. Its largest debt ETF, with $5.8 billion, focuses on inflation-protected securities; another two focus on different maturity Treasuries, while the fourth tracks an aggregate bond index.

De St. Paer declined to comment on exactly how Schwab would address its fixed-income gap, but he did offer a few hints.

While Schwab runs funds dedicated to short- and intermediate-dated Treasuries, it doesn’t have a product focused on long-term bonds, he said. The firm also doesn’t have products focused on components of the aggregate bond index, such as investment-grade or mortgage-backed securities, he said.