and sell 121 ETFs with $0 online trade commissions – a 15% increase from the 105 ETFs first offered when Schwab ETF OneSource was launched in February.
“With the most commission-free ETFs and the broadest category coverage in the industry, Schwab ETF OneSource gives investors and advisors unsurpassed choice when it comes to building diversified commission-free ETF portfolios”
Schwab ETF OneSource includes funds from six leading providers – State Street SPDR® ETFs, Guggenheim Investments, PowerShares, ETF Securities, United States Commodity Funds, and Charles Schwab Investment Management.
The 16 new ETFs include five from Guggenheim, five from SPDR ETFs and six from Charles Schwab Investment Management. The newest additions to Schwab ETF OneSource expand the range of asset categories available to now include asset allocation, long-term corporate bond, and international asset-income ETFs. A list of the ETFs added since the launch of Schwab ETF OneSource appears below.
“With the most commission-free ETFs and the broadest category coverage in the industry, Schwab ETF OneSource gives investors and advisors unsurpassed choice when it comes to building diversified commission-free ETF portfolios,” said Beth Flynn, vice president of ETF platform management at Charles Schwab. “We’re pleased to be adding to the range of funds and asset categories that we can offer commission-free, and continue to believe that this is just the beginning.”
Investors and Their Advisors Embrace Commission-Free ETFs
Average flows into the ETFs featured on Schwab ETF OneSource have more than doubled from pre-launch levels2. While the ETFs offered on Schwab ETF OneSource represent just eight percent of the total number of ETFs available through Schwab, they account for nearly half of all positive ETF flows at Schwab since the February launch of ETF OneSource. In addition, more than 50 percent of ETF flows from Registered Investment Advisors who custody client assets at Schwab are now going into OneSource ETFs.
“Costs matter to investors, and the flows we’ve seen since the debut of Schwab ETF OneSource tell us that investors place value on the ability to buy and sell ETFs commission-free without incurring short-term redemption fees,” added Flynn.
Schwab’s research underscores that cost and fees continue to be critical factors for investors making ETF buying decisions. According to the 2013 ETF Investor Study by Charles Schwab, released earlier this month, the ability to trade ETFs commission-free is most or very important to 45 percent of investors. Notably, the study also highlighted the importance of another key fact about Schwab ETF OneSource – investors are not charged any early redemption fees or surprised with other costs for selling an ETF shortly after buying it. According to the study, clarity about a fund’s redemption fees or other hidden fees is considered the number one cost factor when making ETF buying decisions, with 71 percent saying it is extremely important.
ETFs Added to Schwab ETF OneSource Since Launch
|Fund Name||Ticker||Morningstar Category|
|Guggenheim International Multi-Asset Income ETF||HGI||Foreign Large Value|
|Guggenheim BulletShares 2019 High Yield Corporate Bond ETF||BSJJ||High-Yield Bond|
|Guggenheim BulletShares 2020 High Yield Corporate Bond ETF||BSJK||High-Yield Bond|
|Guggenheim BulletShares 2021 Corporate Bond ETF||BSCL||Intermediate-Term Bond|
|Guggenheim BulletShares 2022 Corporate Bond ETF||BSCM||Intermediate-Term Bond|
|SPDR® Barclays Issuer Scored Corporate Bond ETF||CBND||Long-Term Bond|
|SPDR® SSgA Multi-Asset Real Return ETF||RLY||Aggressive Allocation|
|SPDR® SSgA Global Allocation ETF||GAL||World Allocation|
|SPDR® SSgA Income Allocation ETF||INKM||Moderate Allocation|
|SPDR® S&P® Global Dividend ETF||WDIV||World Stock|
|Schwab Fundamental U.S. Broad Market Index ETF||FNDB||Large Blend|
|Schwab Fundamental U.S. Large Company Index ETF||FNDX||Large Blend|
|Schwab Fundamental U.S. Small Company Index ETF||FNDA||Small Blend|
|Schwab Fundamental International Large Company Index ETF||FNDF||Foreign Large Blend|
|Schwab Fundamental International Small Company Index ETF||FNDC||Foreign Small/Mid Blend|
|Schwab Fundamental Emerging Markets Large Company Index ETF||FNDE||Diversified Emerging Markets|
For a full list of the ETFs available commission-free on Schwab ETF OneSource, visit www.schwab.com/public/schwab/investing/accounts_products/investment/etfs/schwab_etf_onesource. A leader in the retail ETF market, Charles Schwab had $179 billion in ETFs custodied on its platform as of September 30, 2013. Schwab ETFs™, including the new Schwab Fundamental Index® ETFs, had $14.2 billion in assets as of September 30, 2013.
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.
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.
Brokerage Products: Not FDIC Insured • No Bank Guarantee • May Lose Value
Investors should consider carefully information contained in the prospectus, including investment objectives, risks, charges, and expenses. You can request a prospectus by calling Schwab at 800-435-4000. Please read the prospectus carefully before investing.
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).
Charles Schwab & Co., Inc. receives remuneration from third-party ETF companies participating in Schwab ETF OneSource™ for record keeping, shareholder services and other administrative services, including program development and maintenance.
Diversification does not eliminate the risk of investment losses.
Schwab ETFs are distributed by SEI Investments Distribution Co. (SIDCO). SIDCO is not affiliated with Charles Schwab & Co., Inc. Learn more at schwab.com/SchwabETFs.
Charles Schwab Investment Management, Inc. is the investment advisor for Schwab ETFs and an affiliate of the Charles Schwab Corporation.
“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 or its affiliates is sponsored, endorsed, sold or promoted by S&P.
PowerShares® 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.
USCF® and the United States Commodity Funds® are registered trademarks of United States Commodity Funds LLC Limited Liability Company Delaware. All rights reserved.
© Copyright 2013 The Charles Schwab Corporation
1 Conditions apply: Trades in ETFs available through Schwab ETF OneSourceTM (including Schwab ETFs™) 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. See the pricing guide for additional information.