The latest news in investment offerings, financial products and other services relevant to wealth advisors and their clients.

Schwab Asset Management
Schwab Asset Management, the asset management arm of Charles Schwab, has launched a new exchange-traded fund to give investors access to international, investment-grade bonds.

The new offering, called the Schwab International Bond ETF, is listed on the New York Stock Exchange. It carries an expense ratio of 0.06 per cent. 

SAM said the ETF is one of the lowest of its kind in the Morningstar Global Bond-USD Hedged and Lipper International Income Funds categories. The first day of trading is expected to be on or about October 21.

SCIN’s goal is to track as closely as possible, before fees and expenses, the total return of an index comprising international non-US dollar denominated investment-grade debt securities. The ETF, which invests in international developed and emerging markets, uses forward and futures contracts to hedge foreign currency exposure back to the US dollar, helping reduce currency risk.

The firm said it is launching the ETF at a time when international bonds are offering “attractive yields and the potential for risk reduction in a bond portfolio.”

The fund's largest country exposures are expected to be France, Germany, Japan, the UK, and Italy.