Schwab ETF OneSource Expands Commission-Free ETF Lineup

When trading ETFs, investors will have to be aware of the indirect costs like trading fees. Nevertheless, some brokerage platforms, like the Charles Schwab ETF OneSource program, offers commission-free trades on ETFs.

On Wednesday, Charles Schwab expanded its ETF OneSource program to include a dozen new commission-free ETFs from a range of providers, including:

  • Xtrackers MSCI All China Equity ETF (CN)
  • China Region Xtrackers MSCI Germany Hedged Equity ETF (DBGR)
  • Global X U.S. Preferred ETF (PFFD)
  • Guggenheim BulletShares 2025 High Yield Corporate Bond ETF (BSJP)
  • Guggenheim BulletShares 2027 Corporate Bond ETF (BSCR)
  • IQ Chaikin U.S. Small Cap ETF (CSML)
  • PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF (MFEM)
  • PIMCO RAFI Dynamic Multi-Factor International Equity ETF (MFDX)
  • PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF (MFUS)
  • SPDR Bloomberg Barclays Emerging Markets Local Bond ETF (EBND)
  • WisdomTree Emerging Markets ex-State-Owned Enterprises Fund (XSOE)

With the new 12 additions, Charles Schwab users can now access 254 ETFs from 69 Morningstar Categories with $0 online commission fees, no enrollment requirements and no early redemption fees.

Schwab ETF OneSource now offers commission-free ETFs from 16 providers, including ALPS, Deutsche Asset Management, Direxion, ETF Securities, Global X Funds, Guggenheim Investments, IndexIQ, John Hancock Investments, J.P. Morgan Asset Management, OppenheimerFunds, PIMCO, PowerShares, State Street Global Advisors SPDR® ETFs, USCF, WisdomTree and Charles Schwab Investment Management.

As of the end of 2017, the commission-free ETF program surpassed $100 billion in assets under management. As of November 30, the OneSource ETF program saw assets growth of 47%, and for the year-to-date ended November, flows into ETFs in the program was $21.5 billion, or 49% of the total ETF flows at Schwab, which suggests that many investors on the Charles Schwab platform prefer to capitalize on commission-free trades.

“As we approach the five-year anniversary of ETF OneSource, we’re incredibly proud of the growth this program has achieved and that it continues to capture investor interest,” Heather Fischer, vice president of ETF & mutual fund platforms and client solutions strategy at Charles Schwab, said in a note. “According to our research, trading ETFs without commissions or other fees continues to grow in importance for investors, so we’re thrilled to continuously expand our selection of ETFs. The fact that ETF providers continue to see value in the program is demonstrated by the ETFs they’ve continued to add to our program.”

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