Charles Schwab Is Launching Its First New ETF In Four Years

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July 17, 2017 11:27am NYSE:SCHB

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It’s been quite a while since Charles Schwab launched its last ETF, but the brokerage appears to be getting back into the game again with a new ETF filing.


Bloomberg notes that Schwab just filed for a new equity fund, its first since 2013:

Charles Schwab Investment Management, the brokerage’s money-managing arm, is seeking approval for a stock ETF that would track a proprietary index of the 1,000 largest U.S. companies, according to regulatory filings.

The company’s last ETF started trading in August 2013, when Schwab was the 10th largest U.S. ETF issuer with $17 billion under management, data compiled by Bloomberg show. It’s now comfortably in fifth place with $80 billion of assets, and beginning to challenge the dominance of more established rivals such as BlackRock Inc.

If approved, the new ETF could be the brokerage’s 22nd U.S.-listed fund.

Despite not launching a new fund in four years, Schwab’s total assets under management (AUM) have more than quadrupled since 2013. The company has attracted large sums of money to its funds through its industry-low expense fees.

The Schwab U S Broad Market ETF (NYSE:SCHB), for example, offers the lowest expense ratio of any U.S. fund at just 0.03%. SCHB was trading at $59.43 per share on Monday morning, up $0.06 (+0.10%) and has gained 9.69% year-to-date, versus a 9.97% rise in the benchmark S&P 500 index during the same period.

SCHB currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #11 of 116 ETFs in the Large Cap Blend ETFs category.


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