Schwab Dives Into Fixed-Income ETF Pool; ProShares Launches New Funds | ETF Trends

Charles Schwab has many of the core asset classes covered in its lineup of exchange traded funds (ETFs). Now they’re ready to branch out and they’re taking on the popular fixed-income space.

Schwab has filed with the Securities and Exchange Commission (SEC) to offer three U.S. Treasury ETFs, including one designed to protect investors from the ravages of inflation. Oliver Ludwig for Index Universe reports that the funds include the Schwab U.S. TIPS ETF, the Schwab Short-Term U.S. Treasury ETF and the Schwab Intermediate-Term U.S. Treasury ETF, according to the filing.  [5 ETFs That Offer Inflation Protection.]

The details such as expense ratios and ticker symbols have not been disclosed. Schwab’s entry into fixed-income may be well-planned. Their existing ETFs have gathered more than $1 billion in assets, and its ETF-based advisory platform program used by Schwab advisors grew to $551 million by the end of the first quarter since its launch in January. [Bond ETFs Were Hot In Q1, But Watch Out.]

ProShares, the leading manager of leveraged and inverse ETFs, and KBW, the largest full-service investment bank specializing in the financial services sector, announced the launch of the first exchange traded funds (ETFs) providing leveraged or inverse exposure to the regional banking sector.

The ETFs from this duo seek to provide 200% or -100% of the return of the KBW Regional Banking Index for a single day, before fees and expenses. The KBW Regional Banking Index, the most widely used benchmark for U.S. regional banking stocks, was created and is managed by KBW. [Financial ETFs to Watch as the SEC’s Investigation Continues.]

The new ProShares ETFs are:

  • Ultra KBW Regional Banking (NYSEArca:KRU)
  • Short KBW Regional Banking (NYSEArca:KRS)

Remember the long-short ETFs are not intended as long-term investments, and need to be monitored on a daily basis. They are also recommended for use by experienced investors.

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.