Schwab Debuts Midcap And REIT ETFs

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[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 market.

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 section.

Copyright ® 2011 Index Publications LLC . All Rights Reserved.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , ETFs

Referenced Stocks: VNQ , VO

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