ETF Trends
ETF Trends

Charles Schwab (NYSE: SCHW), one of the largest discount brokers in the U.S., continues making exchange traded funds a cost-effective investment vehicle for advisors and investors. On July 1, the company will add nine ETFs to its already expansive Schwab ETF OneSource commission-free exchange traded funds platform.

J.P. Morgan Asset Management, the ETF arm of J.P. Morgan Chase (NYSE: JPM) becomes the newest issuer of Schwab ETF OneSource as all three J.P. Morgan ETFs will be available to Schwab clients commission-free. Those ETFs include the JPMorgan Diversified Return Global Equity ETF (NYSEArca: JPGE), JPMorgan Diversified Return International Equity ETF (NYSEArca: JPIN) and the JPMorgan Diversified Return Emerging Markets Equity ETF (NYSEArca: JPEM).

Last year, seven ETF providers — ALPS, Direxion Investments, Global X Funds, IndexIQ, PIMCO, ProShares and WisdomTree (NasdaqGS: WETF) – joined OneSource. [Schwab Expands Commission-Free ETF Lineup]

With 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, OneSource now offers select ETFs from 14 issuers on a commission-free basis. The entire list can be viewed here.

“Six additional funds from current providers will be added to Schwab ETF OneSource tomorrow. WisdomTree is adding four currency-hedged products, ETF Securities is adding a diversified-factor ETF and Direxion Investments is adding a strategic beta high dividend ETF,” according to a statement issued by California-based Schwab.

The ETFS Diversified-Factor U.S. Large Cap Index Fund (NYSEArca: SBUS), which debuted in late January, is the ETF Securities offering that will be available to Schwab clients commission-free. Direxion adds to its OneSource presence with the Direxion Value Line Small- and Mid-Cap High Dividend ETF (NYSEArca: VLSM). [Direxion Expands Non-Leveraged Lineup With Dividend ETFs]

“The latest expansion of Schwab ETF OneSource allows investors to buy and sell 211 ETFs covering 66 Morningstar Categories with $0 online commissions, no enrollment requirements and no early redemption fees – key differentiators for investors comparing Schwab ETF OneSource to other commission-free ETF offerings,” according to Schwab.

ETF assets custodied at Schwab surged to $246 billion in the first quarter, a 24% year-over-year increase. Earlier this year, Schwab entered the robo advisor fray with Schwab Intelligent Portfolios. Schwab Intelligent Portfolios is also the only automated advisory services that uses algorithms to provide sophisticated advice and automatically monitor and rebalance portfolios without charging any advisory fees, commissions or account services fees.

As of May 31, 2015, Schwab ETF OneSource has $45 billion in assets under management and year-to-date flows into ETFs in the program are $5.8 billion, representing 37% percent of the total ETF flows at Schwab.

New Additions to Schwab ETF OneSource

Chart Courtesy: Charles Schwab