Schwab now manages 15 ETFs and its first offerings are designed to target the main asset classes, he said. The firm has no current plans for more dividend ETFs but would consider offering additional funds if there was client demand, Sturiale added.
Schwab’s new dividend ETF sports low fees, with an expense ratio of 0.17%. The fund can be traded for free, similar to other Schwab ETFs, through online in-house brokerage accounts. [A Quartet of Dividend ETFs]
Dividend ETFs have been raking in the inflows this year. [Vanguard’s High Dividend ETF]
Beth Flynn, head of third-party ETF platform management at Schwab, on Friday’s call said the equity-income category of ETFs represents only 5% of total assets, but has accounted for 11% of year-to-date flows.
Tisha Guerrero and John Spence contributed to this article.