Schwab Adds Emerging Markets, International Small-Caps to ETF Roster
January 21st, 2010 at 3:00pm by Tom Lydon
Charles Schwab launched two new exchange traded funds (ETFs), bringing the total number of ETFs they offer to eight. For the new funds, Schwab is venturing out for some overseas exposure.
Their two additions are:
- Schwab Emerging Markets Equity ETFs (NYSEArca: SCHE): Gives exposure to 20 developing economies, including Brazil, China, Russia and Taiwan. Components are large- and mid-cap companies. [Reasons to stick with emerging markets.]
- Schwab International Small-Cap Equity ETF (NYSEArca: SCHC): Gives exposure to small-cap companies in developed countries, excluding the United States. [The case for small-caps in 2010.]
Assets in Schwab’s first six ETFs have ballooned to $419 million and trading volume has been steadily increasing across the funds. [Schwab's ETFs attract criticism, but is it justified?]
Schwab’s funds have some of the lowest expense ratios in the market for funds with similar objectives — the two new funds each have an expense ratio of 0.35%, according to the press release. These new ETFs can also be bought and sold online commission-free in Schwab accounts. [How Schwab has created competition.]
For more stories about new ETFs, visit our new ETFs category.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.