Fourth Quarter 2016
Socially Conscious Funds List This list is derived from Morningstar, Inc.®1 “Socially Conscious” data, which indicates if the fund identifies itself as selectively investing based on certain noneconomic principles. These funds may make investments based on such issues as environmental responsibility, human rights, or religious views. A socially conscious fund may take a proactive stance by selectively investing in, for example, environmentally friendly companies or firms with good employee relations. This list also includes funds that may avoid investing in companies in the defense industry or companies involved in promoting alcohol, tobacco, or gambling. OPERATING EXPENSE RATIO AS OF SEPTEMBER 30, 2016
Ticker
Fund Name
Morningstar Category
Net OER
2
Gross OER
2
Available on Schwab OneSource®*
U.S. Equity ETFs
ESG CATH DSI KLD SPYX SHE EQLT ESGS ETHO
FlexShares STOXX US ESG Impact ETF Global X S&P 500® Catholic Values ETF iShares MSCI KLD 400 Social iShares MSCI USA ESG Select SPDR® S&P 500 Fossil Fuel Rsrv Free ETF SPDR® SSGA Gender Diversity ETF Workplace Equality ETF Columbia Sustainable US Equity Inc ETF Etho Climate Leadership US ETF
Large Blend Large Blend Large Blend Large Blend Large Blend Large Blend Large Blend Large Value Mid-Cap Growth
0.32 0.29 0.50 0.50 0.20 0.20 0.75 0.35 0.45
0.33 0.39 0.50 0.50 0.25 0.20 0.75 0.35 0.45
Large Blend Large Blend Large Blend Large Blend Large Blend Large Blend Large Blend Large Blend Large Blend Large Blend Large Blend Large Blend Large Blend Large Blend Large Blend Large Blend Large Blend Large Blend Large Blend Large Blend Large Growth Large Growth Large Growth
0.99 0.92 0.91 0.54 1.16 1.23 1.50 0.42 1.19 1.19 1.00 0.87 0.93 0.82 0.48 1.04 0.44 0.71 0.25 1.00 1.46 1.15 0.90
0.99 0.92 2.01 0.74 1.16 1.23 1.68 0.43 1.57 1.49 1.40 0.88 0.93 0.82 0.48 5.44 0.44 0.98 0.25 1.10 1.86 1.15 0.90
Yes Yes
U.S. Equity Mutual Funds
AFDIX AVEDX BIRAX CSXAX DSEFX DTCAX EPVNX GEQZX JHKAX JHJAX AQEIX PRBLX CVALX SEEKX SEECX TGUNX TICRX TLWCX VFTSX WSEFX ATAFX BAWAX BIAWX
American Century Sustainable Equity Inv Ave Maria Rising Dividend BlackRock Impact US Equity Investor A Calvert US Large Cap Core Rspnb Idx A Domini Social Equity Inv Dreyfus Third Century A Epiphany FFV A GuideStone Funds Equity Index Investor JHancock ESG All Cap Core A JHancock ESG Large Cap Core A LKCM Aquinas Catholic Equity Parnassus Core Equity Investor Sentinel Sustainable Core Opp I Steward Large Cap Enhanced Index Indv Steward Large Cap Enhanced Index Inst TCW New America Premier Equities N TIAA-CREF Social Choice Eq Retail TIAA-CREF Social Choice LwCrbn Eq Retl Vanguard FTSE Social Index Inv Walden Equity American Trust Allegiance Brown Advisory Sustainable Growth Adv Brown Advisory Sustainable Growth Inv
Yes Yes Yes Yes Yes Yes Yes
Yes Yes Yes Yes Yes Yes Yes
Yes
Leading Mutual Fund—See page 5 for criteria. * “Schwab OneSource ®” refers to mutual funds that are participating in Schwab Mutual Fund OneSource ® service or ETFs participating in Schwab ETF OneSource.™
Socially Conscious Funds List — Fourth Quarter 2016
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OPERATING EXPENSE RATIO AS OF SEPTEMBER 30, 2016
Ticker
Fund Name
Morningstar Category
Net OER
2
Gross OER
2
Available on Schwab OneSource®*
U.S. Equity Mutual Funds
CSIEX CGJAX LCSTX GCEQX GGEZX NRAAX PARNX PARWX PXWGX WSHFX ARFFX BVSNX CFJAX GVEZX TPYAX CAAPX ARGFX AVEMX CMJAX SRIGX PARMX PWMDX AVEGX CCAFX ETGLX ECOLX NEXTX ARDFX GSCZX PXSCX TRDFX SCECX WASOX
Calvert Equity A Calvert US Large Cap Growth Rspnb Idx A ClearBridge Sustainability Leaders FI Green Century Equity GuideStone Funds Growth Equity Investor Neuberger Berman Socially Rspns A Parnassus Parnassus Endeavor Investor Pax ESG Beta Quality Individual Investor American Funds Washington Mutual F1 Ariel Focus Investor Baywood Socially Responsible Invs Calvert US Large Cap Value Rspnb Idx A GuideStone Funds Value Equity Investor Touchstone Premium Yield Equity A Ariel Appreciation Investor Ariel Fund Investor Ave Maria Catholic Values Calvert US Mid Cap Core Rspnb Idx A Gabelli ESG AAA Parnassus Mid-Cap Pax Mid Cap Individual Investor Ave Maria Growth Calvert Capital Accumulation A Eventide Gilead N Riverbridge Eco Leaders® Investor Shelton Green Alpha Ariel Discovery Investor GuideStone Funds Small Cap Equity Inv Pax Small Cap Individual Investor Steward Small-Mid Cap Enhanced Idx Indv Steward Small-Mid Cap Enhanced Idx Inst Walden Small Cap
Large Growth Large Growth Large Growth Large Growth Large Growth Large Growth Large Growth Large Growth Large Growth Large Value Large Value Large Value Large Value Large Value Large Value Mid-Cap Blend Mid-Cap Blend Mid-Cap Blend Mid-Cap Blend Mid-Cap Blend Mid-Cap Blend Mid-Cap Blend Mid-Cap Growth Mid-Cap Growth Mid-Cap Growth Mid-Cap Growth Mid-Cap Growth Small Blend Small Blend Small Blend Small Blend Small Blend Small Growth
1.07 0.57 1.20 1.25 1.03 1.05 0.84 0.95 0.90 0.66 1.00 1.14 0.57 0.86 1.30 1.12 1.02 1.18 0.57 1.25 0.99 1.14 1.17 1.21 1.38 1.41 1.34 1.32 1.30 1.23 0.85 0.57 1.00
1.07 7.82 4.76 1.25 1.04 1.05 0.84 0.98 0.90 0.66 1.37 1.22 7.42 0.87 1.35 1.12 1.02 1.18 1.79 1.68 1.07 1.14 1.17 1.28 1.38 17.83 1.34 2.17 1.31 1.23 0.85 0.57 1.06
Diversified Emerging Mkts Foreign Large Blend Foreign Large Value World Stock World Stock World Stock World Stock World Stock
0.45 0.40 0.45 0.40 0.42 0.20 0.49 0.20
0.45 0.40 0.45 0.40 0.43 0.20 0.49 0.30
Diversified Emerging Mkts Diversified Emerging Mkts Diversified Emerging Mkts Diversified Pacific/Asia Foreign Large Blend Foreign Large Blend
1.56 1.33 1.58 1.25 0.62 1.28
8.72 2.01 1.79 2.50 1.91 1.28
Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
International Equity ETFs
ESGE ESGD ESGN ESGW ESGG CRBN MPCT LOWC
iShares MSCI EM ESG Optimized iShares MSCI EAFE ESG Optimized Columbia Sustainable Intl Eq Inc ETF Columbia Sustainable Global Eq Inc ETF FlexShares STOXX Glbl ESG Impact ETF iShares MSCI ACWI Low Carbon Target iShares MSCI Global Impact SPDR® MSCI ACWI Low Carbon Target ETF
Yes
International Equity Mutual Funds
AMMAX CVMAX GEMZX PAFSX CDHAX GCINX
AllianzGI Emerging Markets Cnsmer A Calvert Emerging Markets Equity A GuideStone Funds Emerging Mkts Eq Inv Parnassus Asia Calvert Developed Mkts Ex-US Rspnb Idx A Green Century MSCI Intl Indx Indvl Inv
Yes Yes Yes Yes Yes
Leading Mutual Fund—See page 5 for criteria. * “Schwab OneSource ®” refers to mutual funds that are participating in Schwab Mutual Fund OneSource ® service or ETFs participating in Schwab ETF OneSource.™
Socially Conscious Funds List — Fourth Quarter 2016
2
OPERATING EXPENSE RATIO AS OF SEPTEMBER 30, 2016
Ticker
Fund Name
Morningstar Category
Net OER
2
Gross OER
2
Available on Schwab OneSource®*
International Equity Mutual Funds
GIEZX PXINX SNTCX TSORX CWVGX DOMIX CIOAX MASGX ALTFX ASUAX AVEWX GGBZX ESGMX MGGPX NSRIX PXWEX PGRNX PORTX SEEFX SGIDX SGISX TEQAX
GuideStone Funds International Eq Inv Pax MSCI International ESG Idx Indv Inv Steward Intl Enhanced Index Inst TIAA-CREF Social Choice Intl Eq Retail Calvert International Equity A Domini International Social Equity Inv Calvert International Opportunities A Matthews Asia ESG Investor AB Global Thematic Growth A AllianzGI Global Sustainability A Ave Maria World Equity GuideStone Funds Aggressive Allc Inv Mirova Global Sustainable Equity A Morgan Stanley Inst Global Opp A Northern Global Sustainability Index Pax Ellevate Global Women's Idx Indv Inv Pax Global Environmental Mrkts Indv Inv Portfolio 21 Global Equity R Saturna Sustainable Equity Steward Global Equity Income Ind Steward Global Equity Income Inst Touchstone Sustainability & Imp Eq A
Foreign Large Blend Foreign Large Blend Foreign Large Blend Foreign Large Blend Foreign Large Value Foreign Large Value Foreign Small/Mid Blend Pacific/Asia ex-Japan Stk World Stock World Stock World Stock World Stock World Stock World Stock World Stock World Stock World Stock World Stock World Stock World Stock World Stock World Stock
1.34 0.81 0.65 0.79 1.39 1.59 1.51 1.44 1.45 1.20 1.25 1.21 1.30 1.23 0.31 0.91 1.23 1.37 0.99 0.98 0.64 1.25
1.35 0.81 0.65 1.43 1.45 1.59 1.51 9.09 1.45 13.17 1.50 1.21 1.88 1.50 0.37 0.91 1.31 1.37 1.23 0.98 0.64 1.40
Bank Loan Corporate Bond Corporate Bond High Yield Bond High Yield Bond Inflation-Protected Bond Intermediate Government Intermediate Government Intermediate Government Intermediate-Term Bond Intermediate-Term Bond Intermediate-Term Bond Intermediate-Term Bond Intermediate-Term Bond Intermediate-Term Bond Intermediate-Term Bond Intermediate-Term Bond Long-Term Bond Muni California Intermediate Muni National Interm Muni National Long Nontraditional Bond Short-Term Bond Short-Term Bond Short-Term Bond Small Blend
1.13 1.06 1.13 1.07 0.97 0.67 0.95 0.91 0.81 0.51 0.89 0.88 0.95 0.71 0.68 0.60 0.68 0.84 0.71 0.80 0.96 1.12 0.95 1.35 0.64 1.37
1.19 1.06 1.13 1.39 0.97 0.68 1.06 0.91 0.81 0.51 0.89 1.16 1.24 0.72 0.79 0.60 0.69 0.85 0.71 0.96 1.24 1.48 0.95 1.73 0.65 1.39
Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
Bond Mutual Funds
GFLZX CFICX CLDAX CYBAX PAXHX GIPZX ACASX CRAIX CRATX AVEFX CSIBX CGAFX DSBFX GMDZX PRFIX SEACX TSBRX GEDZX CFNTX CTTLX CONAX CUBAX CSDAX EPIAX GLDZX CCVAX
GuideStone Funds Flexible Income Inv Calvert Income A Calvert Long-Term Income A Calvert High Yield Bond A Pax High Yield Bond Individual Investor GuideStone Funds Inflation Prot Bd Inv Access Capital Community Investment A CRA Qualified Investment CRA CRA Qualified Investment Retail Ave Maria Bond Calvert Bond A Calvert Green Bond A Domini Social Bond Inv GuideStone Funds Medium-Duration Bd Inv Parnassus Fixed-Income Steward Select Bond Inst TIAA-CREF Social Choice Bond Retail GuideStone Funds Extended-Dur Bd Inv Shelton California Tax-Free Income Calvert Tax-Free Responsible Impact Bd A Columbia US Social Bond A Calvert Unconstrained Bond A Calvert Short Duration Income A Epiphany FFV Strategic Income A GuideStone Funds Low-Duration Bond Inv Calvert Small Cap A
Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
Yes Yes Yes Yes
Yes
Leading Mutual Fund—See page 5 for criteria. * “Schwab OneSource ®” refers to mutual funds that are participating in Schwab Mutual Fund OneSource ® service or ETFs participating in Schwab ETF OneSource.™
Socially Conscious Funds List — Fourth Quarter 2016
3
OPERATING EXPENSE RATIO AS OF SEPTEMBER 30, 2016
Ticker
Fund Name
Morningstar Category
Net OER
2
Gross OER
2
Available on Schwab OneSource®*
Bond Mutual Funds
GMWZX GMHZX GMFZX GMGZX CULAX GGBFX SEBFX
GuideStone Funds MyDestination 2025 Inv GuideStone Funds MyDestination 2035 Inv GuideStone Funds MyDestination 2045 Inv GuideStone Funds MyDestination 2055 Inv Calvert Ultra-Short Income A GuideStone Funds Global Bond Investor Saturna Sustainable Bond
Target-Date 2025 Target-Date 2035 Target-Date 2045 Target-Date 2055 Ultrashort Bond World Bond World Bond
1.00 1.06 1.10 1.10 0.87 0.85 0.89
1.04 1.11 1.16 1.48 0.87 0.87 1.02
Industrials Miscellaneous Sector Miscellaneous Sector Miscellaneous Sector Miscellaneous Sector Miscellaneous Sector Miscellaneous Sector Miscellaneous Sector Miscellaneous Sector Miscellaneous Sector Miscellaneous Sector Miscellaneous Sector Miscellaneous Sector Miscellaneous Sector
0.55 0.95 0.60 0.57 0.60 0.70 0.64 0.70 0.47 0.67 0.61 0.70 0.70 0.62
1.15 3.57 0.75 0.57 0.65 0.99 0.64 0.73 0.47 0.73 0.61 0.76 0.99 0.62
Equity Energy Equity Energy Health Industrials Natural Resources Natural Resources
1.65 1.98 1.52 0.95 1.28 1.29
1.98 2.31 1.52 0.95 1.44 1.30
Global Real Estate
1.17
1.18
Allocation—50% to 70% Equity
1.50
1.50
Allocation--15% to 30% Equity Allocation--30% to 50% Equity Allocation--30% to 50% Equity Allocation--30% to 50% Equity Allocation--50% to 70% Equity Allocation--50% to 70% Equity Allocation--50% to 70% Equity Allocation--50% to 70% Equity Allocation--50% to 70% Equity Allocation--70% to 85% Equity Allocation--70% to 85% Equity Allocation--70% to 85% Equity Allocation--85%+ Equity Infrastructure World Allocation World Allocation
0.97 1.05 1.03 1.48 1.21 0.97 1.18 0.99 0.93 1.48 1.13 1.59 1.26 2.01 1.24 1.23
0.97 1.27 1.03 3.47 1.21 0.97 1.38 1.00 0.93 1.48 1.13 2.57 1.57 2.01 1.41 1.53
Yes Yes
Sector ETFs
EVX HECO FAN FIW QCLN GRID CGW TAN ICLN PZD PHO PBW PUW GEX
VanEck Vectors Environmental Svcs ETF EcoLogical Strategy ETF First Trust ISE Global Wind Energy ETF First Trust ISE Water ETF First Trust NASDAQ® Cln Edge® GrnEngyETF First Trust NASDAQ® Cln Edge® StGidIfsETF Guggenheim S&P Global Water ETF Guggenheim Solar ETF iShares Global Clean Energy PowerShares Cleantech ETF PowerShares Water Resources ETF PowerShares WilderHill Clean Energy ETF PowerShares WilderHill Prog Engy ETF VanEck Vectors Global Alt Energy ETF
Yes
Sector Mutual Funds
CGAEX GAAEX ETNHX FSLEX CFWAX GNRZX
Calvert Global Energy Solutions A Guinness Atkinson Alternative Energy Eventide Healthcare & Life Sciences N Fidelity® Select Envir and Alt Engy Port Calvert Global Water A GuideStone Funds Global Natrl Res Eq Inv
Yes Yes Yes Yes
Real Assets Mutual Funds
GREZX
GuideStone Funds Real Estate Secs Inv
Specialty ETFs
GIVE
AdvisorShares Global Echo ETF
Specialty Mutual Funds
GFIZX CCLAX GGIZX PWMAX SSIAX CSIFX CMAAX GDMZX PAXWX GCBLX GCOZX PGPAX CAAAX FLRUX APPLX ETNMX
GuideStone Funds Conservative Allc Inv Calvert Conservative Allocation A GuideStone Funds Balanced Allc Inv Pax Sustainable Managers Total Ret A 1919 Socially Responsive Balanced A Calvert Balanced A Calvert Moderate Allocation A GuideStone Funds Defensv Mkt Strats Inv Pax Balanced Individual Investor Green Century Balanced GuideStone Funds Growth Allocation Inv Pax Sustainable Managers Cptl Apprc A Calvert Aggressive Allocation A Infrastructure Retail Appleseed Investor Eventide Multi-Asset Income N
Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
Leading Mutual Fund—See page 5 for criteria. * “Schwab OneSource ®” refers to mutual funds that are participating in Schwab Mutual Fund OneSource ® service or ETFs participating in Schwab ETF OneSource.™
Socially Conscious Funds List — Fourth Quarter 2016
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Each fund on the Socially Conscious Funds List has identified itself as “Socially Conscious” according to data received from Morningstar, Inc. and must be open to new investors at Schwab. How Leading Mutual Funds are selected “Leading Mutual Funds” with the
symbol have met certain quantitative and qualitative criteria beyond simply being available
and identified by Morningstar, Inc. as Socially Conscious. This subset of the Socially Conscious Funds List features eligible actively managed mutual funds evaluated by Charles Schwab Investment Advisory, Inc. (CSIA) and that generally fall within the top 35% of all evaluated funds within a given Morningstar Category based upon CSIA ratings. Additionally, each Leading Mutual Funds List fund must: • Have a minimum three-year performance track record, and • Have at least $20 million in assets under management across all share classes. Actively managed mutual funds, including Schwab Affiliate Funds, are evaluated by CSIA based on a quantitative analysis of risk, performance, expenses, active share (when meaningful), assets under management, and asset flows. CSIA also may apply additional qualitative factors to its analysis to enhance its overall evaluation of a fund, including, for example, changes in a fund’s investment strategy or management structure, portfolio manager tenure, whether a fund’s investment style and portfolio holdings are representative of its investment category, portfolio composition and turnover rates, consistency of a fund’s performance and CSIA’s evaluation of the fund over time, and other risk and diversification considerations. There is no limit to the number of funds that can be included on the Leading Mutual Funds List in any category.
Investing in mutual funds at Schwab Trades in no-load mutual funds participating in the Schwab Mutual Fund OneSource® service (including Schwab Funds®), as well as certain other funds, are available without transaction fees when placed through Schwab.com or our automated phone channels. For each of these trades placed through a broker, a $25 service charge applies. Charles Schwab & Co., Inc. (“Schwab”) reserves the right to change the funds made available without transaction fees and to reinstate fees on any funds. Schwab’s short-term redemption fee of $49.95 will be charged on the redemption of funds purchased through Schwab’s Mutual Fund OneSource service (and certain other funds with no transaction fees) and held for 90 days or less. Schwab reserves the right to exempt certain funds from this fee, including Schwab Funds, which may charge a separate redemption fee, and funds that accommodate short-term trading. Schwab receives remuneration from fund companies participating in the Mutual Fund OneSource service for recordkeeping and shareholder services and other administrative services. Schwab also may receive remuneration from transaction fee fund companies for certain administrative services. Investing in exchange traded funds (ETFs) at Schwab Unlike mutual funds, shares of ETFs are not individually redeemable directly with the ETF fund. Shares are bought and sold at market price, which may be higher or lower than the net asset value (NAV). Schwab receives remuneration from third-party ETF companies participating in Schwab ETF OneSource™ for recordkeeping, shareholder services, and other administrative services, including program development and maintenance. Socially Conscious Funds List — Fourth Quarter 2016
Third-party Schwab ETF OneSource shares purchased may not be immediately marginable at Schwab. Conditions apply: Trades in ETFs available through Schwab ETF OneSource (including Schwab ETFs™) are available without commissions when placed online in a Schwab account. Service charges apply for trade orders placed through a broker ($25) or by automated phone ($5). An exchange-processing fee applies to sell transactions. Certain types of Schwab ETF OneSource transactions are not eligible for the commission waiver, such as short sells and buys to cover (not including Schwab ETFs). Schwab reserves the right to change the ETFs we make available without commissions. All ETFs are subject to management fees and expenses. Additional important information No mention of particular funds or fund families here should be construed as a recommendation or considered an offer to sell, or a solicitation to buy, any securities. This information is provided for general information purposes only and should not be considered an individualized recommendation or personalized investment advice. The securities listed may not be suitable for everyone. Each investor needs to review a security transaction for his or her own particular financial situation. Schwab or its employees may sometimes hold positions in the securities listed here. Some of the funds on this list could be subject to sales loads, transaction fees, and early redemption fees. Please see the Charles Schwab Pricing Guide for additional information. Please consult each fund’s prospectus for a fund’s specific fees, charges, investment strategy, and screening methodology. Charles Schwab Investment Advisory, Inc. (CSIA) is an affiliate of Schwab.
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Brokerage Products: Not FDIC-Insured • No Bank Guarantee • May Lose Value
Investors should consider carefully information contained in the prospectus, including investment objectives, risks, charges, and expenses. You can obtain a prospectus by calling Schwab at 1-800-435-4000. Please read the prospectus carefully before investing. Investment value will fluctuate and shares, when redeemed, may be worth more or less than their original cost.
Charles Schwab & Co., Inc. utilizes third-party data sources for this list that are believed to be accurate, although we can’t guarantee the accuracy of this data. 1
©2016 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
A net operating expense ratio (‘OER’) lower than the gross expense ratio may reflect a cap on or contractual waiver of fund expense. Please read the fund prospectus for details on limits or expiration dates for any such waivers.
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