Charles Schwab cut fees on four equity index ETFs effective June 11, 2026, bringing 16 of its 24 market-cap weighted index ETFs to just 3 basis points, according to the company’s press release.
The reductions affect 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 now charge 0.03%, down from 0.04%, while SCHC and SCHE dropped to 0.06%, from 0.08% and 0.07% respectively.
Schwab Asset Management, the fifth-largest ETF provider, said the cuts enable investors to build diversified portfolios at historically low costs. An investor with $10,000 in a U.S. stock portfolio using Schwab index ETFs would pay roughly $3 to $7 annually in fund expenses, according to Schwab’s calculations.
The move comes as the ETF industry intensifies its focus on cost reduction. In February 2026, Vanguard announced fee cuts on 53 funds, with the company expecting to deliver nearly $600 million in investor savings across 2025 and 2026. Schwab Asset Management said the latest reductions “leverage our growth and efficiencies to drive down costs for investors.”
Index ETF fees have become a key competitive battleground, with providers racing to offer the lowest expense ratios. Schwab’s current offerings now position the company among the lowest-cost providers for broad-market equity exposure, matching the industry’s push toward ultra-low-fee products.
Sources
- Charles Schwab Press Release — Announced fee reductions on four equity index ETFs effective June 11, 2026, with details on new expense ratios and investor impact
- Investing.com — Reported that 16 of Schwab’s 24 market-cap weighted index ETFs now charge 3 basis points
- Barron’s — Covered the fee cuts and noted expense ratio drops of 0.01 to 0.02 percentage points
- Reuters — Reported on Vanguard’s February 2026 fee cuts on 53 funds and expected $600 million in investor savings
