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In Battle for Retirement Dollars, Schwab Launches Lower-Priced Target Date Funds

Charles Schwab has a new target in the battle for your retirement dollars.

Charles Schwab (SCHW) has a new target in the battle for your retirement dollars. Schwab is launching Schwab Target Index Funds, the lowest-cost target date funds available to retirement plans, with an across-the-board expense ratio of eight basis points and no minimum investments, regardless of plan size. Prior to the introduction of Schwab Target Index Funds, the most competitive pricing for target date funds (TDFs) could require minimums of $100 million or more. 'There is a laser focus on fees and this levels the playing field for access to all investors,' said Jake Gilliam, portfolio strategist at Charles Schwab Investment Management. Under Schwab's new arrangement, every plan gets the same low price, and participants no longer have to pay more just because they may work at a smaller company. The new products are constructed with Schwab ETFs. The new series includes funds with target retirement dates between 2010 and 2060 in five-year increments.