Eliminating commissions on exchange traded funds is a popular tactic among brokerage firms to lure more investors. Another broker is looking to get some of that action. On Monday, Ally announced its own commission-free ETF program.
Ally said it is offering over 100 ETFs on a commission-free basis, including all of WisdomTree’s products.
“In addition to the WisdomTree ETFs, more than 30 iShares® ETFs from BlackRock are offered by Ally Invest to give investors further opportunities to diversify and integrate socially-conscious investing into their portfolios with a range of markets and strategies to suit a variety of investment goals,” according to a statement issued by Ally.
A Crowded Field in ETF Platforms
Commission-free platforms for exchange traded funds are popular throughout the brokerage industry with some of the largest brokerage firms, including E*Trade, Schwab and TD Ameritrade, offering expansive of ETFs on a commission-free basis.
There are plenty of brokers offering commission-free ETF platforms. Last month, Vanguard, the second-largest U.S. ETF sponsor, said it was eliminating commissions on over 1,800 ETFs. Following additions to its commission-free roster in June, E*TRADE now offers more than 250 ETFs without commissions. The new ETFs joining the broker’s no commission program include funds from Direxion, Janus, Nuveen’s NuShares, BlackRock’s iShares, Janus, Reality Shares and Vanguard.
“ETFs are investment funds traded on stock exchanges, much like stocks, that appeal to all types of investors – from passive investors who want to diversify their portfolios to more active investors who are looking to use sector or specialty funds to gain more exposure to a particular segment of the market,” said David Dusseault, executive director of Ally Invest, in the statement. “We’re proud to introduce commission-free ETFs from some of the industry’s most innovative and admired providers and give our customers even more choice when it comes to their investing preferences.”
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