Schwab Cuts Fees on 24 Mutual Funds, Plans ETFs

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May 6, 2009 8:54am ETF BASIC NEWS

schwabSchwab told investors last month it expects to lose as much as $200 million in revenue this year from reducing fees on money market funds because of a drop in interest rates. Those fees may be reinstated once the Federal Reserve raises interest rates from their current near-zero level, Merk said.

Schwab lost 15 cents today to $18.58 at 5 p.m. in composite trading on the Nasdaq Stock Market. The shares have gained 15 percent this year, compared with a 17 percent advance in the KBW Capital Markets Index.

Schwab is awaiting approval from the U.S. Securities and Exchange Commission to introduce its own line of exchange-traded funds. Schwab clients represent about a fifth of all retail investor assets in ETFs, giving the company a base of clients that may help fuel growth of the new funds, said Merk.

“We want to be a bigger player in the ETFs than we have been,” he said. “This will be a multiyear effort.”

Full Story: http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aEfLbp36xV0c



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