Charles Schwab (NYSE: SCHW), the largest discount broker, said today it will expand its Schwab ETF OneSource lineup of commission-free exchange traded funds to nearly 200 offerings starting on Feb. 1.
On that date, Schwab clients will be able to access 198 ETFs across 64 Morningstar categories on a commission-free basis. Schwab does not have any enrollment requirements or charge early redemption fees for the ETFs in the program – two key differentiators for investors comparing similar commission-free ETF programs, according to a statement issued by California-based Schwab earlier Monday.
OneSource, the largest commission-free ETF platform on the market today, has been a significant driver of ETF asset growth for Schwab. Last year, ETF assets custodied at Schwab surged 18% to $231 billion, according to the firm’s fourth-quarter and 2014 snapshot released. [ETF Assets Continue Flowing to Schwab]
“Schwab ETF OneSource has $38 billion in assets under management as of December 31, 2014. Flows into ETFs in the program were over $10 billion in 2014, representing 43 percent of the total ETF flows at Schwab,” the company said in the statement.
In September, Schwab unveiled a massive expansion of its Schwab ETF OneSource commission-free ETF platform by adding 65 new ETFs and seven new issuers.
New providers joining OneSource are ALPS, Direxion Investments, Global X Funds, IndexIQ, PIMCO, ProShares and WisdomTree (NasdaqGS: WETF). Those firms join OneSource’s original members State Street (NYSE: STT), Guggenheim, Invesco’s (NYSE: IVZ) PowerShares, ETF Securities, U.S. Commodity Funds and Schwab’s own lineup of ETFs. [Schwab Bolsters Commission-Free ETF Lineup]
The new additions to OneSource come courtesy of five of the platforms current providers, Direxion, PowerShares, ProShares, State Street and WisdomTree.
OneSource’s newest ETFs include the Direxion iBillionaire Index ETF (NYSEArca: IBLN), PowerShares DWA Emerging Markets Momentum Portfolio (NYSEArca: PIE), PowerShares DWA SmallCap Momentum Portfolio (NYSEArca: DWAS), ProShares Morningstar Alternatives Solution ETF (NYSEArca: ALTS), SPDR MSCI ACWI Low Carbon Target ETF (NYSEArca: LOWC) and the WisdomTree Bloomberg U.S. Dollar Bullish Fund (NYSEArca: USDU).
New ETFs on Schwab ETF OneSource
Table Courtesy: Charles Schwab
ETF Trends editorial team contributed to this post.