Largest Commission-Free ETF Program Now Offers Even More: Schwab ETF OneSourceTM Deepens Bench of Providers and Expands to 180+ $0 Commission ETFs
Charles Schwab announced it has added more than 60 additional ETFs to Schwab ETF OneSourceTM, giving investors and their advisors unparalleled choice through the program that offers them the most commission-free ETFs*. With seven new firms joining the original roster of six ETF providers, beginning today, investors can trade 182 ETFs covering 65 Morningstar Categories for $0 online trade commissions at Schwab with no early redemption fees or enrollment requirements – key differentiators for investors comparing similar offerings in the industry.
The new ETF providers joining Schwab ETF OneSource are ALPS, Direxion Investments, Global X Funds, IndexIQ, PIMCO, ProShares and WisdomTree. They join founding providers ETF Securities, Guggenheim Investments, PowerShares, State Street SPDR(R) ETFs, United States Commodity Funds and Charles Schwab Investment Management.
“We know that every dollar counts for investors – and trading commissions can really add up, so they are crucial when evaluating the total cost of an ETF,” said Heather Fischer, Vice President of ETF Platform Management at Charles Schwab. “Our clients are thrilled that Schwab ETF OneSource has made ETF investing more affordable and accessible, and today’s announcement means the program with the most commission-free ETFs just took another major step forward on their behalf.”
Investors and advisors have flocked to Schwab ETF OneSource. As of August 31, 2014, Schwab ETF OneSource has $31 billion in assets under management and year-to-date flows into ETFs in the program are $5.9 billion, representing 45 percent of the total ETF flows at Schwab.
In total, 65 ETFs have been added to the program, with 28 coming from new participants and 37 coming from existing providers. A complete list of Schwab ETF OneSource ETFs is available here.
According to The 2014 ETF Investor Study by Charles Schwab, 85 percent of investors believe that the ability to trade ETFs without commissions is important. When it comes to evaluating commission-free ETF offerings, choice is paramount. Sixty-nine percent of investors say that having the right selection of ETFs matters most, and 59 percent say that having ETFs that span the broadest number of asset categories is important.
“Investors are looking across asset categories and index weightings for new ideas to build highly diversified portfolios in a cost effective way,” noted Fischer. “We’re very excited to be able to give clients who want to eliminate commission costs a choice of ETFs that are unrivaled in breadth and depth across Morningstar ETF Categories, which collectively span 99 percent of industry assets. Investors who value broad category coverage can’t find this selection anywhere else.”
Transparency and simplicity are also important to investors. Sixty-nine percent of investors in The 2014 ETF Investor Study by Charles Schwab say that it is extremely important that there are no hidden fees. Another 46 percent say they would not buy a commission-free ETF if they knew they had to pay a fee for selling the ETF too early.
With More Choice Comes More Tools
In response to client demand and to complement the wider array of commission-free ETFs, Schwab is also enhancing its research capabilities and filtering tools to help investors make more informed buying decisions. When researching an ETF, investors can now easily compare similar products with one click, and see relevant educational content alongside fund summary pages. Investors are also now able to screen and compare ETFs across different index weightings, including fundamental, equal-weight and low-volatility products.
About Schwab ETF OneSource
Schwab ETF OneSource offers investors and advisors access to the most commission-free ETFs anywhere in the industry. As of August 31, 2014, Schwab ETF OneSource has $31 billion in assets under management. The share of year-to-date ETF flows at Schwab going into Schwab ETF OneSource is 45 percent. Commission-free online trading is available to individual investors at Schwab, to approximately 7,000 independent investment advisors who use Schwab’s custodial services and through Schwab retirement accounts that permit trading of ETFs.
Schwab offers a range of resources to help clients choose ETFs that fit their investment needs, including the Schwab ETF Select ListTM; tutorials, education, research and tools available via Schwab’s online ETF center and the ETF Education Exchange(R); and live events at local Schwab branches.
About The 2014 ETF Investor Study by Charles Schwab
The 2014 ETF Investor Study by Charles Schwab is the fourth installment of an annual online survey of more than 1,000 individual investors between the ages of 25-75 with at least $25,000 in investable assets who have purchased ETFs in the past two years or are considering doing so in the near term.
Conducted by Koski Research from May 8-14, 2014, the study has approximately a three percent margin of error. Survey respondents were not asked to indicate whether they had accounts with Charles Schwab. All data is self-reported by study participants and is not verified or validated.
At Charles Schwab we believe in the power of investing to help individuals create a better tomorrow. We have a history of challenging the status quo in our industry, innovating in ways that benefit investors and the advisors and employers who serve them, and championing our clients’ goals with passion and integrity.
Investors should consider carefully information contained in the prospectus, including investment objectives, risks, charges, and expenses. You can obtain a prospectus by visiting schwab.com or calling 800-435-4000. Please read the prospectus carefully before investing.
Through its operating subsidiaries, The Charles Schwab Corporation (NYSE:SCHW) provides a full range of securities brokerage, banking, money management and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC, www.sipc.org), and affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; compliance and trade monitoring solutions; referrals to independent fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through Schwab Advisor Services. Its banking subsidiary, Charles Schwab Bank (member FDIC and an Equal Housing Lender), provides banking and lending services and products. More information is available at www.schwab.com and www.aboutschwab.com.
Charles Schwab & Co., Inc. receives remuneration from third-party ETF companies participating in Schwab ETF OneSource for recordkeeping, shareholder services, and other administrative services, including program development and maintenance.
Investment returns will fluctuate and are subject to market volatility, so that an investor’s shares, when redeemed or sold, may be worth more or less than their original cost. Unlike mutual funds, shares of ETFs are not individually redeemable directly with the ETF. Shares are bought and sold at market price, which may be higher or lower than the net asset value (NAV).
Diversification strategies do not ensure a profit and do not protect against losses in declining markets.
Schwab ETFs are distributed by SEI Investments Distribution Co. (SIDCO). SIDCO is not affiliated with The Charles Schwab Corporation or any of its affiliates. Learn more at www.schwab.com/SchwabETFs.
“ETF Securities” is a registered trademark of ETF Securities Limited. IndexIQ(R) is a registered trademark of IndexIQ. PowerShares(R) is a registered trademark of Invesco PowerShares Capital Management LLC (Invesco PowerShares). Invesco PowerShares and Invesco Distributors, Inc. are indirect, wholly owned subsidiaries of Invesco Ltd. “SPDR” is a registered trademark of Standard & Poor’s Financial Services LLC (“S&P”) and has been licensed for use by State Street Corporation. No financial product offered by State Street Corporation or its affiliates is sponsored, endorsed, sold or promoted by S&P or its affiliates, and S&P and its affiliates make no representation, warranty or condition regarding the advisability of buying, selling or holding units/shares in such products. USCF(R) and the United States Commodity Funds(R) are registered trademarks of United States Commodity Funds LLC Limited Liability Company Delaware. All rights reserved. WisdomTree(R) is the marketing name for WisdomTree Investments, Inc. and its wholly owned subsidiary, WisdomTree Asset Management, Inc., a registered investment adviser and investment adviser to the WisdomTree Trust and each of its series. Charles Schwab Investment Management, Inc. is the investment advisor for Schwab ETFs and an affiliate of the Charles Schwab Corporation.
(c) 2014 Charles Schwab & Co., Inc. Member SIPC.
*Conditions Apply: Trades in ETFs available through Schwab ETF OneSourceTM (including Schwab ETFsTM) are available without commissions when placed online in a Schwab account. Service charges apply for trade orders placed through a broker ($25) or by automated phone ($5). An exchange processing fee applies to sell transactions. Certain types of Schwab ETF OneSource transactions are not eligible for the commission waiver, such as short sells and buys to cover (not including Schwab ETFs). Schwab reserves the right to change the ETFs we make available without commissions. All ETFs are subject to management fees and expenses. Please see Charles Schwab Pricing Guide for additional information.
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