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Rating:Schwab Expands Its Commission-Free ETF Line Not Rated 0.0 Email Routing List Email & Route  Print Print
Wednesday, October 16, 2013

Schwab Expands Its Commission-Free ETF Line

Reported by Tommy Fernandez

Since the February launch of Schwab ETF OneSource, Charles Schwab Investment Management [profile] has expanded the selection of products it offers on the commission-free ETF trading platform.

Schwab clients can now buy and sell 121 ETFs with no online trade commissions – up from the 105 ETFs first offered when Schwab ETF OneSource was launched in February.

Schwab ETF OneSource includes funds from six leading providers – State Street SPDR® ETFs, Guggenheim Investments, PowerShares, ETF Securities, United States CommodityFunds, and Charles Schwab Investment Management.

The 16 new ETFs include five from Guggenheim, five from SPDR ETFs and six from Charles Schwab Investment Management.

A full list of all of the ETFs can be found here.

Here is the press release:
Company Press Release

SCHWAB ETF ONESOURCE™ EXPANDS TO OFFER MORE THAN 120 COMMISSION-FREE ETFs



  SAN FRANCISCO, Oct. 16, 2013 — Since its debut earlier this year, Charles Schwab has added 16 new ETFs to Schwab ETF OneSource™, the platform that givesinvestors and advisors access to the most commission-free ETFs anywhere in the industry1. Today, Schwab clients can now buy and sell 121 ETFs with $0 online trade commissions – a 15% increase from the 105 ETFs first offered when Schwab ETF OneSource was launched in February.

  Schwab ETF OneSource includes funds from six leading providers – State Street SPDR® ETFs, Guggenheim Investments, PowerShares, ETF Securities, United States CommodityFunds, and Charles Schwab Investment Management.

  The 16 new ETFs include five from Guggenheim, five from SPDR ETFs and six from Charles Schwab Investment Management. The newest additions to Schwab ETF OneSource expand the range of asset categories available to now include asset allocation, long-term corporate bond, and international asset-income ETFs. A list of the ETFs added since thelaunch of Schwab ETF OneSource appears below.

  “With the most commission-free ETFs and the broadest category coverage in the industry, Schwab ETF OneSource gives investors and advisors unsurpassed choice when it comes tobuilding diversified commission- free ETF portfolios,” said Beth Flynn, vice president of ETF platform management at Charles Schwab. “We’re pleased to be adding to the rangeof funds and asset categories that we can offer commission-free, and continue to believe that this is just the beginning.”

  Investors and Their Advisors Embrace Commission-Free ETFs

Average flows into the ETFs featured on Schwab ETF OneSource have more than doubled from pre-launch levels2. While the ETFs offered on Schwab ETF OneSource represent justeight percent of the total number of ETFs available through Schwab, they account for nearly half of all net ETF flows at Schwab since the February launch of ETF OneSource. Inaddition, more than 50 percent of ETF flows from Registered Investment Advisors who custody client assets at Schwab are now going into OneSource ETFs.

  “Costs matter to investors, and the flows we’ve seen since the debut of Schwab ETF OneSource tell us that investors place value on the ability to buy and sell ETFs commission-freewithout incurring short-term redemption fees,” added Flynn.

  1            Conditions apply: Trades in ETFs available through Schwab ETF OneSourceTM (including Schwab ETFs™) are available without commissions when placed online in a Schwab account. Service chargesapply 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 eligiblefor 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 tomanagement fees and expenses. See the pricing guide for additional information.

  2  H2 2012 vs. February – September 2013     Page 2 of 3   Schwab’s research underscores that cost and fees continue to be critical factors for investors making ETF  buying decisions. According to the 2013 ETF Investor Study by CharlesSchwab, released earlier this month, the ability to trade ETFs commission-free is most or very important to 45 percent of investors. Notably, the study also highlighted theimportance of another key fact about Schwab ETF OneSource – investors are not charged any early redemption fees or surprised with other costs for selling an ETF shortly afterbuying it. According to   the study, clarity about a fund’s redemption fees or other hidden fees is considered the number one cost factor when making ETF buying decisions, with 71percent saying it is extremely important.

  ETFs Added to Schwab ETF OneSource Since Launch

    Fund Name   Ticker   Morningstar Category Guggenheim International Multi-Asset Income ETF HGI Foreign Large Value Guggenheim BulletShares 2019 High Yield Corporate Bond ETF BSJJ High-Yield Bond Guggenheim BulletShares 2020 High Yield Corporate Bond ETF BSJK High-Yield Bond Guggenheim BulletShares 2021 Corporate Bond ETF BSCL Intermediate-Term Bond Guggenheim BulletShares 2022 Corporate Bond ETF BSCM Intermediate-Term Bond SPDR® Barclays Issuer Scored Corporate Bond ETF CBND Long-Term Bond SPDR® SSgA Multi-Asset Real Return ETF RLY Aggressive Allocation SPDR® SSgA Global Allocation ETF GAL World Allocation SPDR® SSgA Income Allocation ETF INKM Moderate Allocation SPDR® S&P® Global Dividend ETF WDIV World Stock Schwab Fundamental U.S. Broad Market Index ETF FNDB Large Blend Schwab Fundamental U.S. Large Company Index ETF FNDX Large Blend Schwab Fundamental U.S. Small Company Index ETF FNDA Small Blend Schwab Fundamental International Large Company Index ETF FNDF Foreign Large Blend Schwab Fundamental International Small Company Index ETF FNDC Foreign Small/Mid Blend Schwab Fundamental Emerging Markets Large Company Index ETF   FNDE Diversified EmergingMarkets  

For a full list of the ETFs available commission-free on Schwab ETF OneSource, visit  www.schwab.com/public/schwab/investing/accounts_products/investment/etfs/schwab_etf_onesource.    A    leader in the retail ETF market, Charles Schwab had $179 billion in ETFs custodied on its platform as of September 30, 2013. Schwab ETFs™, including the newSchwab Fundamental Index® ETFs, had $14.2 billion in assets as of September 30, 2013.
 

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