ETF Investor Snapshot: Q1 2011

Information and insights contained in this Snapshot are based upon analysis of Exchange-Traded Funds (ETFs),
regardless of ETF or distributor, custodied at Charles Schwab & Co., Inc., and include both Schwab Retail Clients and RIA
Clients. Please see reverse for explanation of terms and conditions of use.

ETF Assets at Schwab: $121B 12-Month ETF Flows at Schwab

(32% 12-Month Growth) (% Segment Share)
$121B
Growth 9% 6%
12%
$92B 32%
37% 39% 47%
12%
58%
31%

Retail Traders
18% 51% 52% 47%
57%
Retail Investors

RIA Clients
Mar ’10 Mar ’11 Apr ’09 – Mar ’10 Apr ’10 – Mar ’11

ETF TRENDS AT SCHWAB

• ETF assets custodied at Schwab grew to $121 billion, up 32% over the past year. Retail Investor ETF assets have
grown 58% and now account for 37% of the total ETF assets at Schwab. In Q1 2011, assets in International Fixed
Income ETFs have decreased 57% while US Fixed Income ETF assets have increased 15%.
• 12-month ETF flows were driven equally by Retail Investors and RIA Clients (each 47% of annual net flows). During
the past quarter, US Equity and Sector ETFs dominated flows, capturing a combined 68% of all ETF net flows.
• Retail Traders’ share of positive ETF flows have decreased in the past year, led in Q1 2011 by outflows from
International Equity ETFs (-35% net ETF flows for Retail Traders).

Q1 SPOTLIGHT: RETAIL PRODUCT MIX Schwab Retail Clients’ Average Balances by Product Type*
The analysis to the right compares the average
product mix at quarter-end for retail clients who Retail Investors Retail Traders
owned at least one ETF and those who did not.
7%
• For both retail client segments, those who 18%
owed ETFs had a lower percentage of Cash 23% 26%
and a higher percentage of Fixed Income
securities than non-ETF owners, consistent 11%
with previous Snapshots showing ETF
owners as more active and invested. 56%
• Clients who owned ETFs had more assets 28%
32%
than those that did not: both Retail Investor
and Retail Trader ETF owners had more than 44%
double the average assets than clients who
did not hold ETFs. 3%
• Retail Investors who owned ETFs had on 28% 3%
ETFs
average less than half of the percentage of
Cash in their accounts than those without 39%
4% Mutual Funds
ETFs, although their average Mutual Fund 5% 34% Stocks
balance was almost the same. 23%
Fixed Income
• Retail Traders had a higher usage of ETFs 16% Cash/Other
(42%) but a lower average allocation of
ETFs (18%). Those that owned ETFs had Hold ETFs No ETFs Hold ETFs No ETFs
less Stocks but more Mutual Funds relative 14% 42% % Segment with
to Traders who did not own ETFs. ETF Ownership
* Please see reverse side for product type definitions
 ETF Investor Snapshot: Q1 2011
FOR QUESTIONS, CONTACT
Alyson Nikulicz
Public Relations
Charles Schwab & Co., Inc.
Direct: (407) 619-1657
Email: alyson.nikulicz@schwab.com

NOTES
• All data is as of March 31, 2011.
• All data and information from Charles Schwab & Co.

DEFINITIONS
• “Schwab” means Charles Schwab & Co., Inc., an SEC-registered broker-dealer and investment advisor.
• Schwab Retail Clients hold brokerage accounts at Schwab and work with Schwab directly either trading on their own or with some help and guidance
from Schwab. This includes brokerage assets from retirement accounts (like 401(k)) that come with the ability to open and trade retirement account
balances through a Schwab brokerage account.
• RIA stands for “Registered Investment Advisor”.
• RIA Clients: Schwab Advisor Services™, supports Independent RIAs whose clients open accounts at Schwab and use Schwab for custodial, operational,
and trading support. In this Snapshot, “RIA Clients” pertains to the end clients served by RIAs unless specifically noted otherwise.
• Retail Traders: Schwab Retail Clients defined as clients who trade at least 36 times a year (including ETFs and stocks) and have $150,000 or more in
investable assets with Schwab.
• Retail Investors: All Schwab Retail Clients except Retail Traders plus Schwab Corporate and Retirement Services™ end clients (which includes
corporate brokerage accounts and employee retirement and stock option plans). These have been grouped with Retail Investors for simplicity.
• Households: Contains at least one open account. An "open" account is an account that has received a statement in the past eight months and does not
have a Closed restriction code.
• ETF Ownership: If any account in the household has at least one ETF at the end of the month including Schwab ETFs™ and third-party ETFs.
• Stocks Average Balances: The percentage of the month-end household statement equity that is in stocks, including shares in foreign companies and
ADRs, REITs, single country index funds and warrants. The short position in stocks is subtracted from the long position before calculating the percentage.
• ETFs Average Balances: The percentage of the month-end statement equity that is in ETF positions. Includes both Schwab ETFs and non-Schwab
ETFs.
• Fixed Income Average Balances: The percentage of the month-end statement equity that is in Fixed Income position, including CDs, all government
and corporate and foreign bonds, convertible preferred equities, Treasury Notes and Bills, Strips and Inflation Protected Treasuries (TIPS).
• Mutual Funds Average Balances: The percentage of the month-end statement equity that is in mutual fund positions, including both equity and bond
mutual funds. Positions in money market funds or sweeps are not included.
• Cash/Other Average Balances: The percentage of the month-end statement equity that is in cash, money market funds, sweeps, and any other product
not included in the other categories. Includes cash balances in a Schwab One account that earns interest, uninvested cash in brokerage accounts that
has not yet been "swept" or moved into another instrument, balances held at Schwab Bank as a result of being swept, sweep and non-sweep balances in
Schwab Money Market Funds, and balances in Laudus Money Market Funds.

Before purchasing an ETF, investors should consider carefully information contained in the prospectus, including
investment objectives, risks, charges and expenses. You can request a prospectus by calling Schwab at 800-435-
4000. Please read the prospectus carefully before investing.
Some specialized exchange-traded funds can be subject to additional market risks. Investment returns will
fluctuate and are subject to market volatility, so that an investor's shares, when redeemed or sold, may be worth
more or less than their original cost.
Schwab Advisor Services™ serves independent investment advisors and includes the custody, trading and support services of Charles
Schwab & Co., Inc. ("Schwab").

SCHWAB®, CHARLES SCHWAB®, Schwab ETFs™, Schwab Advisor Services™, and Schwab Corporate and Retirement Services™ are
registered trademarks and/or services marks of Charles Schwab & Co., Inc. All rights reserved.

Redistribution of this ETF Investor Snapshot is prohibited without express prior consent. To be
approved for use, analysis and data herein must be attributed to: Charles Schwab & Co. If reprinted,
both pages of this ETF Investor Snapshot must be included.
This information is for press and institutional use only.

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