Shares of discount broker Charles Schwab (NYSE:
) are higher by nearly one percent and touched a new 52-week
higher earlier today after the company unveiled substantial
additions to its commission-free ETF lineup.
Under a new platform known as Schwab ETF OneSource, the
California-based brokerage firm will, starting today, allow its
clients to buy and sell 105
with $0 online trade commissions. Schwab has allowed its clients
to trade the firm's own ETFs commission-free since the firm first
entered the ETF business several years ago.
"Just as Schwab Mutual Fund OneSource changed the landscape
for investors and advisors by providing convenient, affordable
access to leading mutual funds when Chuck Schwab introduced it
twenty years ago, we believe Schwab ETF OneSource will deliver
enormous benefit and change the way our clients buy and sell
ETFs," said Schwab CEO Walt Bettinger
in a statement
Noteworthy is the fact that Schwab's commission-free lineup
includes over 100 ETFs from a variety of issuers including State
) State Street Global Advisors, the second-largest U.S. ETF
sponsor. Schwab will also offer ETFs issued by Invesco's (NYSE:
) PowerShares, Guggenheim ETF Securities and United States
Commodity Funds as part of the Schwab ETF OneSource platform.
Schwab's new commission-free ETF program also looks to be a
shot across the bow at rival brokers such as Fidelity, but the
Schwab menu could be what impresses investors. For example,
Fidelity does allow its clients to trade select iShares ETFs on a
commission-free basis, though that
lineup is fairly limited
and none of the funds featured can be considered exotic.
TD Ameritrade (NYSE:
) offers a
broader range of commission-free ETFs
, indicating that Schwab and TD Ameritrade could see their
rivalry intensify as both aim to capture assets from
cost-conscious ETF investors.
ETF lineup includes
plenty of standard fare such as the Schwab U.S. Large-Cap Value
) and the Rydex S&P 500 Equal Weight ETF (NYSE:
However, the Schwab ETF OneSource also features more exotic
offerings such as the Guggenheim China Small-Cap ETF (NYSE:
) and the SPDR S&P Emerging Latin America ETF (NYSE:
). Schwab OneSource's commission-free bond ETF menu is also among
the deepest in the industry, including such funds as the
PowerShares Senior Loan Portfolio (NYSE:
) and the SPDR Barclays Capital EM Local Bond ETF (NYSE:
) along more benign offerings such as the Schwab U.S. TIPS ETF
While OneSource's sector offerings do not include any of the
popular Select Sector SPDRs, the group does feature nine of
Guggenheim's equal-weight sector ETFs such as the Guggenheim
S&P Equal Weight Technology (NYSE:
OneSource also features a wide array of forex and commodities
offerings, something not previously seen on other commission-free
platforms. Seven Guggenheim forex ETFs can be traded
commission-free on OneSource. Schwab's commission-free
commodities offerings now include the U.S. Gasoline Fund (NYSE:
), the ETF Physical Silver Shares (NYSE:
) and the ETFS Physical Platinum Shares (NYSE:
For more on ETFs, click
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