More Investors Use ETFs to Access the Right Market Exposures

Financial advisors are looking for ways to better utilize and incorporate exchange traded funds into a diversified investment portfolio.

“They’re asking us a lot of questions on how to position portfolios. Given the market environment we’re in, the great bull market we’ve had, they’re really thinking, ‘Do I have the right allocation? What’s that equity-fixed-income allocation look like? How do I use cap-weighted and smart beta in my portfolio to really provide the right investor outcome?'” David Botset, Senior Vice President, Strategy & Product, Charles Schwab Investment Management, said at the Inside ETFs conference.

To help investors achieve their goals, Charles Schwab has offered a line of broad index-based ETFs at dirt-cheap costs. Schwab offers some of the cheapest U.S.-listed ETFs on the market, including the Schwab U.S. Large-Cap ETF (NYSEArca: SCHX) and Schwab U.S. Broad Market ETF (NYSEArca: SCHB), which both come with a 0.03% expense ratio.

Additionally, Schwab offers a suite of “intelligent-” or “smart-“beta index-based ETFs that screen for fundamental measures of adjusted sales, retained operating cash flow, and dividends plus buybacks, including:

Watch David Botset Discuss Proper Portfolio Positioning:

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