[Correction: A previous version of this article included a
table that had incorrect tickers and launch dates assigned to
certain funds. That table has been removed.]
Charles Schwab, the San Francisco-based discount broker that
entered the U.S. exchange-traded fund business as a sponsor in
November 2009, launched two U.S. equity ETFs today, one targeted at
U.S. midcap companies and the other at real estate investment
trusts. The rollouts increase its lineup of ETFs to 13.
The Schwab U.S. Mid-Cap ETF (NYSEArca:SCHM) and Schwab U.S. REIT
ETF (NYSEArca:SCHH) both have annual expense ratios of 0.13
percent, keeping in focus the company's low-cost strategy. Vanguard
Group, its main rival in the low-cost segment of the ETF market,
charges 0.13 percent for its Vanguard REIT ETF (NYSEArca:VNQ) and
0.14 percent for the Vanguard Mid-Cap ETF (NYSEArca:VO).
Schwab's low-cost strategy seems to be working. As of Jan. 12,
Schwab had collected $2.87 billion in assets, according to data
compiled by IndexUniverse.com. It attracted $2.14 billion of that
money in 2010. The company's lineup now consists of seven U.S.
equity ETFs, three international equity funds-including one focused
on emerging markets-and three ETFs targeting the U.S. Treasurys
SCHM, the midcap ETF, was trading at $25.22 after its launch
with a relatively tight bid/ask spread of 2 cents. SCHH, the REIT
fund, traded at $25.14 with a 1 cent spread, according to data
compiled on Yahoo Finance.
Don't forget to check IndexUniverse.com's ETF Data
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