In a move to change the dynamics of the U.S. exchange traded
The Charles Schwab Corporation
) has announced the launch of a new platform - Schwab ETF
OneSource. Through this platform investors and advisors will get
access to nearly 105 ETFs without paying online trading
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Investors buying and selling ETFs online through the
abovementioned platform will just be paying the operating expense
that they would have paid anyway. The ETFs under the plan include
funds managed by Guggenheim Investments,
State Street Corporation
), ETF Securities, U.S. Commodity Funds and Schwab's own ETF
Yet, some other popular ETFs - SPDR S&P 500, PowerShares QQQ
and SPDR Gold Shares - are still not a part of the offering.
However, more additions may take place in the platform going
Concurrently, Schwab also unveiled a new portfolio building tool
- Schwab ETF Portfolio Builder. This tool will help clients build
all-ETF diversified portfolios to meet their investment
requirements in a simple and affordable way. While choosing a
particular risk profile, investors can modify the number of
shares of each ETF and view its impact on their portfolio before
buying it online.
Over the last few quarters, Schwab has been trying to augment its
top line by becoming less dependent on interest rates. In Sep
2012, Schwab announced fee cuts on 15 of its ETFs in the range of
approximately 17%-59% across its U.S. equity, international
equity and bond ETFs.
ETF market is one of the fastest growing and highly promising
markets for generating good returns. Hence, many companies have
shown tremendous interest in these. Similar to Schwab,
E*TRADE Financial Corporation
TD Ameritrade Holding Corporation
) also provide zero-commission ETFs to their clients.
Schwab currently retains a Zacks Rank #3 (Hold).