Schwab is happy with its position as a provider of funds in core categories that can play important roles in client portfolios. “Two things drive that – one of the exceptional pricing; the other is the Schwab brand and the relationship we have with our clients,” which is everyone from mom and pop investors to hedge funds and RIAs.
Schwab has no designs on taking over the ETF world. Crawford says that Schwab is first and foremost a broker, and they want to help their clients find that balance, whether it’s in buying one of the Schwab ETFs or another provider’s fund.
That doesn’t mean they’re done with launching new funds. They hope to further expand the product line, but don’t expect any exotic offerings – any new issues will still be in the core category.
The ETFs have not only delivered in terms of strong reception by the market, but in performance, as well. SCHB is up 7.8% year-to-date, ahead of the S&P’s 7.1%. Schwab U.S. Small-Cap (NYSEArca: SCHA) is the top performer so far this year, up 13.1%, reflecting the strength of small-caps coming out of recessions. [Why Small-Cap ETFs Are Outperforming.]
Schwab’s eight 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