The fund sponsors pay a fee to participate in the program, but they argue that the costs are balanced against the benefits of added visibility on the Schwab platform. In October 2013 16 new ETFs were added to OneSource, including five from Guggenheim, five from State Street Global Advisors and six from Charles Schwab Investment Management. [Schwab Bolsters OneSource Lineup]
OneSource currently shows 119 ETFs across 58 Morningstar coverage categories available on a commission-free basis, more than any other commission-free ETF platform.
In 2013, ETF assets custodied at Schwab surged 29% to $196 billion compared with industry growth of 26%, according to the firm’s “ETF Investor Snapshot” released last month. [Schwab Gaining ETF Assets]
Popular ETFs available on OneSource include the Schwab US Dividend Equity ETF (NYSEArca: SCHD), the PowerShares S&P 500 Low Volatility Portfolio (NYSEArca: SPLV), the Guggenheim China Small Cap Index ETF (NYSEArca: HAO) and the SPDR S&P International Dividend ETF (NYSEArca: DWX).