Schwab to launch new active bond fund amid banner ETF Year

Published On Nov 5, 2024, 6:00 AM

Charles Schwab plans to launch a new actively-managed bond ETF, the Schwab Core Bond ETF, intended to provide total returns and generate income by investing in U.S. debt securities. This will be their third active ETF following the Schwab Ariel ESG ETF and Schwab Ultra-Short Income ETF. The launch comes amid a trend where active ETFs are gaining attention and inflows, especially in a market context where fixed income strategies are becoming more appealing due to rising interest rates.

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Stock Forecasts

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Positive

The pending launch of the Schwab Core Bond ETF aligns well with the current interest in bond investments, particularly as interest rates rise. The ETF market has been showing positive trends, especially in active ETFs, making Schwab's entry potentially beneficial. However, the performance will heavily depend on the underlying assets and the management strategy.

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Positive

The introduction of this ETF could lead to increased interest and investment in other Schwab ETFs as well, particularly as investors look for diversified fixed income options. This could have a positive impact on related Schwab ETFs in the market.

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