Charles Schwab Platform Provides a Clearer Picture on ETF Growth

“We continue to see the platform grow,” Fischer said. “The ETF OneSource started almost four ago with just over a hundred ETFs on the platform. As of now, we’re at 228. We started with six providers and we’re now at 16 – our most recent addition being OppenheimerFunds.”

As the ETF industry continues to grow, indexing or has been evolving alongside the changing ETF landscape. Davidow pointed out that ETFs started off with traditional beta indexing, or indexing 1.0, but has quickly evolved into more dynamic structure, or indexing 2.0.

“As we get into 2.0, which is very exciting with smart beta and all these complex products, we understand that individual investors in particular need to understand what’s going on under the hood,” Davidow said.

Unlike traditional beta-indexed market capitalization-weighted funds, these smart beta ETFs track customized indices based on specific factor investments