Schwab Asset Management is splitting shares on two-thirds of its 33 exchange-traded funds, aiming to stimulate sales with lower share prices.

The company announced this week an effort to make 20 of its exchange-traded funds more appealing to financial advisors and retail investors by reducing the net asset values through share splits.

The impacted ETFs, ranging from a 4-for-1 split by the Schwab US Large Cap Growth ETF (SCHG) to a 2-for-1 split by the Schwab International Equity ETF (SCHF), will not change the total value of a shareholder’s investment.

Schwab ETF Split: List of Funds

The list of ETFs subject to share splits, scheduled for Oct. 11, all have current share prices ranging from $40 to $103.

 

Ticker

Fund

NAV/share

Split Ratio

SCHG

Schwab U.S. Large-Cap Growth ETF

103.90

4-for-1

SCHD

Schwab U.S. Dividend Equity ETF

85.02

3-for-1

SCHM

Schwab U.S. Mid-Cap ETF

83.20

3-for-1

SCHV

Schwab U.S. Large-Cap Value ETF

80.26

3-for-1

FNDX

Schwab Fundamental U.S. Large Company ETF

71.55

3-for-1

FNDB

Schwab Fundamental U.S. Broad Market ETF

70.18

3-for-1

SCHX

Schwab U.S. Large-Cap ETF

67.74

3-for-1

SCHB

Schwab U.S. Broad Market ETF

66.39

3-for-1

FNDA

Schwab Fundamental U.S. Small Company ETF

59.58

2-for-1

SCHK

Schwab 1000 Index? ETF

55.16

2-for-1

SCHP

Schwab U.S. TIPS ETF

53.78

2-for-1

SCYB

Schwab High Yield Bond ETF

53.36

2-for-1

SCMB

Schwab Municipal Bond ETF

52.33

2-for-1

SCHA

Schwab U.S. Small-Cap ETF

51.57

2-for-1

SCHR

Schwab Intermediate-Term U.S. Treasury ETF

50.76

2-for-1

SCHJ

Schwab 1-5 Year Corporate Bond ETF

49.69

2-for-1

SCHO

Schwab Short-Term U.S. Treasury ETF

49.06

2-for-1

SCHZ

Schwab U.S. Aggregate Bond ETF

47.66

2-for-1

SCHI

Schwab 5-10 Year Corporate Bond ETF

46.28

2-for-1

SCHF

Schwab International Equity ETF

40.76

2-for-1

ETF Share Split: What It Means

“ETF share splits are primarily about maintaining or increasing investor accessibility,” said Nate Geraci, founder of The ETF Store in Overland Park, Kans.

“The lower price handle makes it easier for advisors to deploy and manage the ETFs in portfolios, primarily for smaller dollar accounts,” he added. “It also appeals to retail investors, offering the perception of affordability.”

Ryan Jackson, senior manager research analyst at Morningstar, explained that the ETF share splits “don’t matter much for current investors.”

“They don't affect the overall value of the ETFs or create a taxable event,” he said. “It could improve the liquidity in some instances because more investors may be able to trade them, but that's a very small-scale benefit. It's mostly business as usual.”

Scwhab ETF Splits May Increase Demand

Jackson added that share splits are an easy way to potentially increase demand for Schwab’s ETFs.