Charles Schwab Investment Management announced Friday that trading has begun in two new exchange-traded funds, with no online trading commissions for Schwab clients and low operating expense ratios.
The two new funds are the Schwab U.S. Large-Cap Growth ETF and the Schwab U.S. Large-Cap Value ETF, which are in addition to Schwab’s four other ETFs. Those four, which were launched Nov. 3 are: U.S. Broad Market, U.S. Large-Cap, U.S. Small-Cap and International Equity.
As of Dec. 9, Schwab had $209 million in assets under management in the first four Schwab ETFs, and trading volume across the four ETFs has averaged approximately 555,000 shares per day since they started trading.
Two additional Schwab ETFs, covering emerging markets and international small-cap equity, are expected to be launched in January 2010.
Peter Crawford, senior vice president at Charles Schwab & Co., Inc., stated in a press release, that Schwab clients have indicated an interest in ETFs as a way to invest in and trade entire segments of the market: “These two new ETFs allow investors to tilt their portfolios based on whichever style, growth or value, they think will lead the market in the future.”
The new Schwab ETFs have some of the lowest expense ratios in the market at 0.15%, Schwab said. Commission-free online trading of Schwab ETFs is also available for individual investors at Schwab, independent investment advisors who use Schwab’s custodial services and through Schwab retirement accounts that permit trading of ETFs.