Schwab Bond ETFs See Billions Pour In, and Here's Why

With billions flowing into their funds, it's been a banner year for Schwab's bond ETFs. As of August, Schwab's core bond funds have each experienced inflows of over $1 billion, with two ETFs bringing in nearly $2 billion.

Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »

Schwab 5-10 Year Corporate Bond ETF (NYSEMKT: SCHI)

Schwab U.S. Aggregate Bond ETF (NYSEMKT: SCHZ)

Schwab Municipal Bond ETF (NYSEMKT: SCMB)

Schwab Intermediate-Term U.S. Treasury ETF (NYSEMKT: SCHR)

Typically, investors turn to U.S. Treasuries as a safe haven when the market becomes volatile or when they see attractive income relative to riskier assets. They may also be looking for investments to serve as a core building block for a balanced, income-oriented portfolio.

The overall goal of each of the Schwab funds is the same: to track established bond indexes that measure bond market performance, rather than trying to beat them through active management. While each of Schwab's bond ETFs is a bit different, they're designed for buy-and-hold investors and those seeking to balance their portfolio. Each fund's goal is to track -- before fees and expenses -- a specific index as closely as possible. Here's a look at which index each fund follows:

Bloomberg U.S. 5-10 Year Corporate Bond Index

Bloomberg U.S. Treasury Inflation-Linked Bond Index (Series-L)

Schwab Intermediate-Term U.S. Treasury ETF

While bond ETFs may not be for everyone, the benefits of investing can be numerous. For example:

Low cost: Average expense ratios for bond ETFs are notably lower than those of mutual funds. For example, each of these Schwab ETFs carries an expense ratio of 0.030%

Built-in diversification: A single ETF holds a variety of assets, offering an investor's portfolio the diversification it may need to weather market downturns.

Transparency: The net asset value (NAV) is updated and published each trading day, allowing investors to compare the market price with the underlying value.

Intraday liquidity: ETFs trade on exchanges throughout the day, so investors can sell at any time the exchange is open.