Schwab Asset Management today announced that its Schwab Exchange-Traded Funds (ETFs) will have zero capital gains distributions for the year 2024. This marks a continuation of Schwab’s commitment to tax-efficient investing and reflects the firm’s efforts to manage the tax impact on investors’ portfolios.
“As part of our ongoing focus on delivering value to investors, we are pleased to announce that our Schwab ETFs will not distribute any capital gains in 2024,” said Jonathan D. Craig, Executive Vice President of Schwab Asset Management. “This is consistent with our long-standing approach to tax efficiency, which helps investors keep more of their returns.”
The decision to avoid capital gains distributions for Schwab ETFs is a result of Schwab’s active management strategies, designed to minimize tax liabilities for investors. This approach is particularly beneficial for long-term investors, as it helps them avoid the tax implications typically associated with capital gains distributions at year-end.
Schwab’s tax-efficient ETFs are designed to provide a low-cost investment solution while minimizing the impact of taxes. With zero capital gains distributions, Schwab continues to set itself apart in offering investors a strategy that maximizes after-tax returns.
In addition to the tax-efficiency benefits, Schwab ETFs also offer a variety of investment choices, including equity, fixed income, and sector-specific funds, making them a versatile option for a range of investment goals.
“By focusing on tax efficiency and keeping costs low, we’re providing our investors with a way to potentially enhance their after-tax returns,” Craig added. “We believe this approach helps investors stay on track toward their long-term financial objectives.”
Schwab’s decision to not distribute capital gains for 2024 underscores its ongoing commitment to providing cost-effective, tax-efficient investment options for investors at all levels.
