With all due respect, when I go to an all-you-can-eat buffet, I can eat 10 plates of food, but I wouldn’t. I trust the majority of people would be similarly level-headed. The positives of what Schwab has done far outweigh the negatives. The fact is that advisors who are in custody at Schwab care about costs and transaction fees, and this is a huge thing that Schwab has done for the industry.
After two bear markets in a 10-year span, there are emotional hurdles and fears that advisors and investors alike have to overcome. Schwab’s commission-free trading helps alleviate those concerns. The next question will be whether Schwab opens no-transaction/no-commission ETFs, the way they did in mutual funds.
For information on new ETFs, visit our new ETFs category.
The first four of Schwab’s eight ETFs began trading last month:
- 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
In December, Schwab will launch four more funds, one of which began trading today:
- Schwab U.S. Large-Cap Growth (NYSEArca: SCHG), 0.15% expense ratio; this fund launched today and tracks the Dow Jones U.S. Large-Cap Growth Total Stock Market Index
- 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
Max Chen contributed to this article.