Not to be outdone by Fidelity and Vanguard, which last month launched income funds of their own specially tailored for retirees, Charles Schwab has launched an income fund intended to compete with annuities, Dow Jones reports.

The Schwab Premier Income Fund will invest in a wide variety of securities, including equities, bonds and derivatives.

“People have been trying to move away from insurance annuity-type products,” said Kim Daifotis, head of fixed income in Schwab’s investment management unit. “This is the first thing we are delivering in response. In the next few years, you are going to see a lot of products, not just from Schwab but from everybody, that address retirement and how people draw down assets.

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