Schwab Asset Management maintains its Above Average Parent rating for its demonstrated commitment to offering sensible products at competitive prices.
Leveraging parent company Charles Schwab’s broad distribution network, including its brokerage and wealth platforms, robo-advisor, and model portfolios, Schwab Asset Management reaches a wide range of investors and has become one of the US’ largest asset managers with USD 947 billion in fund assets under management as of August 2026. The firm also has a sizable money market suite, with USD 694 billion in AUM.
The asset management firm has maintained a clear strategic direction under CEO Omar Aguilar’s steady leadership since 2022, prioritizing the low-cost portfolio building blocks that have characterized the firm’s lineup for a long time. The firm remains committed to lowering costs for investors and now sports an asset-weighted average expense ratio of just 0.07% across its funds, tied for the lowest in the US fund industry. Most of Schwab’s AUM is in low-cost index strategies, managed by experienced teams and supported by robust systems.
While Schwab occasionally ventures into areas outside its core strength and recently shuttered a small subadvised active exchange-traded fund, such offerings remain a small part of its lineup. The firm has invested in technology and personnel to support innovation in areas like direct indexing, active ETFs, and now private assets. The March 2026 acquisition of private market platform Forge Global means the firm may soon offer private assets to clients; in fact, Forge filed a registration statement for a private markets interval fund with the Securities and Exchange Commission in February 2026.
Such initiatives aside, Schwab’s focus remains on providing foundational building blocks for portfolios and delivering long-term value to investors. Its culture emphasizes teamwork and succession planning, which helps reduce key-person risk and ensures continuity through manager departures.
United States