) has broadsided the ETF marketplace with rock bottom expense
ratios along with commission free trading. And this time, it's
more of the same.
The San Francisco, CA-based firm announced the launch of Schwab ETF
OneSource- a new ETF platform that gives investors and advisors
access to the most commission-free ETFs anywhere in the industry.
Beginning today, Schwab clients can buy and sell 105 ETFs with $0
online trade commissions. The offering spans major asset classes,
with funds from leading providers, including State Street SPDR
ETFs, Guggenheim Investments, PowerShares, ETF Securities, United
States Commodity Funds, and Charles Schwab Investment
"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
Walt Bettinger, CEO of Charles Schwab.
ETFs added to the company's commission free trading platform
include funds like the Guggenheim S&P 500 Equal Weight ETF
(NYSEARCA:RSP), PowerShares S&P 500 Low Volatility ETF
(NYSEARCA:SPLV), Guggenheim BRIC ETF (NYSEARCA:EEB), PowerShares
Emerging Markets Sovereign Debt ETF (NYSEARCA:PCY), and the ETFS
Physical Precious Metals Basket Shares (NYSEARCA:GLTR).
Bettinger emphasized that Schwab clients who buy ETFs online
through Schwab ETF OneSource will pay exactly the same operating
expense ratios (OERs) they would elsewhere, but without paying a
He added, "Awareness and popularity of ETFs have been growing
steadily across the range of investors and advisors. Whether there
is interest in broad-based exposure to equity markets, access to a
single asset class, or a specific fund that seeks to reduce
volatility - Schwab ETF OneSource offers a solution - and we're
helping investors put more of their money to work for them. It's
another example of Schwab challenging the status quo to bring
greater value to our clients."
According to the 2012 ETF Investor Study by Charles Schwab,
released in October of last year, cost is the number one factor
investors look at when selecting ETFs. Investors surveyed said they
pay the most attention to OERs, followed by trade commissions.
Nearly 40% say the ability to trade ETFs commission-free is either
'most important' or 'very important.'
The same study revealed that investor usage of ETFs is going
strong, with 41% planning to invest more in ETFs this year. At the
same time, there is a distinct need for investor education, with
45% callingthemselves novices when it comes to understanding
Total assets in U.S. listed ETFs stand at $1.4 trillion.
Schwab ETFs, which can be bought and sold commission-free online
in Schwab accounts, had $8.6 billion in assets as of December 31,
Follow us on Twitter @