Have you talked to Chuck recently? If you haven’t, he wants you to know that he is going to make exchange traded fund (ETF) investing a little bit easier. How? By expanding his ETF product offering and pricing the new funds very attractively.
Daisy Maxey of The Wall Street Journal reports that Charles Schwab has filed to launch three more funds this year en route to doubling its current lineup of eight. Two funds will be investing in Treasuries and the remaining one in TIPS. [How TIPS Work.]
Schwab currently manages $1.2 billion in its ETF products and is bullish on the growth of ETFs as a mainstay for investors. By growing its product lineup, Schwab hopes to be the place investors go to, said Peter Crawford, senior vice president at Charles Schwab. [Schwab ETFs Hit $1 Billion.]
A major selling point for Schwab ETFs are their low prices. Each ETF is either the lowest or among the lowest priced in its respective category. Earlier this week, Vanguard followed suit by offering its clients zero commission trades across its lineup of ETFs. [Vanguard Ready to Take on ETF Leaders.]
In another push to attract investor money, Schwab launched an ETF wrap product earlier this year. The wrap offers a portfolio of 20 ETFs and charges about 1% in fees.
Schwab’s ETFs are:
- Schwab U.S. Broad Stock Market (NYSEArca: SCHB), 0.08% expense ratio
- Schwab U.S. Large-Cap (NYSEArca: SCHX), 0.08% expense ratio
- Schwab U.S. Small-Cap (NYSEArca: SCHA), 0.15% expense ratio
- Schwab International Equity (NYSEArca: SCHF), 0.15% expense ratio
- Schwab U.S. Large-Cap Growth (NYSEArca: SCHG), 0.15% expense ratio
- Schwab U.S. Large-Cap Value (NYSEArca: SCHV), 0.15% expense ratio
- Schwab International Small-Cap Equity (NYSEArca: SCHC), 0.35% expense ratio
- Schwab Emerging Markets Equity (NYSEArca: SCHE), 0.35% expense ratio
Sumin Kim contributed to this article.
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.