Schwab Creates ETF Select List

As more asset managers create exchange-traded funds, Charles Schwab has created a quarterly Schwab ETF Select List to help investors choose an ETF.

In addition, Schwab has released analysis and commentary on ETF investor behavior and trends for independent registered investment advisors, “The ETF Investor: 2010 in Review by Charles Schwab.”

When selecting the list, Schwab looks at cost of ownership, risk, fund structure, fit within a given category, narrowness of index, tracking error, bid/ask volatility and due diligence.

“With a thousand ETFs now available and more coming out weekly, investors tell us that selecting an ETF can be an overwhelming experience,” said Beth Flynn, vice president of ETF platform development at Charles Schwab. “Our goal is to help our clients make informed choices about these increasingly popular investment vehicles.”

ETF assets held by retail investors at Schwab grew 61% in 2010 and now account for 37% of the total ETF assets custodied at Schwab.

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