Many investors and advisors use Charles Schwab Corp.’s brokerage platform to buy and sell exchange traded funds. The firm is also trying to boost assets in its in-house ETFs by offering razor-thin expense ratios on Schwab-managed ETFs.
Schwab has entered onto the scene and started playing the “penny-a-point” game. The financial-services giant has come into the ETF business and become direct competition to Vanguard, and BlackRock’s iShares. [ETF Fees: How Low Can They Go?]
Schwab has purposely priced many of its domestic stock ETFs lower than Vanguard. Mitch Tuchman for MarketWatch reports that while other ETF sponsors are looking for niches, Schwab challenges some of the biggest and most entrenched products. [Schwab Mulls ETF Warnings: Report]