“We believe Schwab ETFs are a great tool for this because they provide our clients with exposure to core asset categories, and have a history of being tax efficient and performing in line with their indexes,” added Marie Chandoha, president of Charles Schwab Investment Management, in a press release. “Today’s announcement lowers one more barrier for investors who use our ETFs as the building blocks of their portfolios.”
Investors’ ability to build diversified, low-cost portfolios with ETFs is “astounding,” says Tadas Viskanta at the Abnormal Returns blog.
“Not all that long ago these types of expenses were reserved for the largest institutional investor. Now they are available to the smallest investor,” he wrote.
“There ain’t no such thing as a free lunch in this world, but at least when it comes to a certain class of ETFs there are some very cheap lunches,” Viskanta said.