The so-called fee war in the exchange traded fund space has helped slash annual investment costs on a number of fund products, and it looks like it is paying off for both providers and investors.

Last September, Charles Schwab reduced its fees on a number of funds, including the Schwab U.S. Broad Market ETF (NYSEArca: SCHB), to 0.04%, the lowest on the market, from the original 0.06% expense ratio, writes Eric Balchunas for Bloomberg. [Charles Schwab Grabs for ETF Market Share]

Since then, the SCHB ETF has doubled in size to $2 billion in assets under management. Additionally, the Schwab U.S. Large-Cap ETF (NYSEArca: SCHX), which also comes with a 0.04% expense ratio, added $400 million in assets, a 40% gain.

Originally, Vanguard began the low-cost investment theme with its patented line of index mutual funds and ETFs. However, Schwab has tried to undercut the competition as a loss leader to attract investors onto its own brokerage platform.

Disregarding the low fee aspect for a moment, SCHB as an investment provides a diversified exposure to 1,956 U.S. stocks, covering all major sectors, with a tilt toward large-cap stocks.

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