Charles Schwab just announced commission free Charles Schwab ETFs. I am just amazed at how online discount brokers keep making it cheaper and cheaper for people to trade securities online.
Exchange Traded Funds
For those of you unfamiliar with ETFs, ETF stands for an exchange trade fund. ETFs are investment funds that track a market index (like an index mutual fund) that also can be traded like stocks.
Schwab ETFs
The Schwab ETFs can be traded commission free and they have very low operating expenses which make them a great way for investors to invest in various indexes. Here is a comparison of the commissions charged by Schwab, Fidelity, E-Trade, and Ameritrade:
Schwab ETF commission per trade - $0
Fidelity ETF commission per trade - $19.95
ETrade ETF commission per trade - $12.99
Ameritrade ETF commission per trade - $9.99
It will be interesting to see whether Fidelity, Etrade and Ameritrade lower their trading commissions to match Schwab. Competition is great for us consumers.
Schwab currently has 8 ETFs to choose from. Here is the list of Charles Schwab ETFs -
Schwab U.S. Broad Market ETF (SCHB)
Schwab U.S. Large-Cap ETF (SCHX)
Schwab U.S. Large-Cap Growth ETF (SCHG)
Schwab U.S. Large-Cap Value ETF (SCHV)
Schwab U.S. Small-Cap ETF (SCHA)
Schwab International Equity ETF (SCHF)
Schwab International Small-Cap Equity ETF (SCHC)
Schwab Emerging Markets Equity ETF (SCHE)
For people looking to build a diversified portfolio, exchange traded funds offer a great way to invest. The expense ratios are very low and now with the Charles Schwab ETFs you can trade them for free.
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