This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Schwab Jumps Into ETF Race

Charles Schwab has set his sights on the ETF industry in an effort to stay on the cutting edge in a rapidly changing investment environment.

Passive proprietary models from firms like Charles Schwab (SCHW - Get Report) will soon go toe to toe with firms like iShares in the fight for rapidly increasing share volume.

ETFs are becoming part of the larger strategy at firms such as Vanguard, Fidelity and Pimco, and the future of the ETF industry will be with large companies like Schwab, looking to diversify their investment offerings.

Schwab is in a good position to stake out the new ETF territory. While other money managers felt the pullback caused by economic distress, Schwab brought in $113 billion though brokerage services and funds.

Charles Schwab

According to Barron's Leslie P. Norton, this figure is larger than what Citigroup (C - Get Report), Morgan Stanley (MS - Get Report), Merrill Lynch, E Trade (ETFC - Get Report) and TD Ameritrade (AMTD - Get Report) brought in combined. Schwab currently has $1.1 trillion across all of its businesses. Norton also notes that it is the country's 13 largest fund complex, with $242 billion in assets.

As new firms enter the ETF fray, the race is on to offer the cheapest versions of popular funds. Many Vanguard ETFs, and early Pimco ETFs, are directly taking aim at pricier iShares funds. This is a process that Schwab will most likely meet head on.

In May, Schwab cut the expense ratio of its Schwab S&P 500 Index (SWPIX) to 0.09%, a fee which is less than the Vanguard 500 Index (FVINX) fund. As investors start to look for one-stop shopping of mutual funds, ETFs, and fixed-income products, the manager with the lowest fees and largest assets will be the most competitive.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AMTD $32.45 -3.00%
C $51.22 -4.20%
ETFC $25.17 -4.30%
MS $33.29 -3.40%
SCHW $29.48 -3.00%

Markets

Chart of I:DJI
DOW 16,172.60 -355.43 -2.15%
S&P 500 1,936.26 -35.92 -1.82%
NASDAQ 4,709.4210 -67.0870 -1.40%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs