Charles Schwab Launches First ETFs That Trade Commission-Free Online at Schwab

Charles Schwab, a marketplace provider of exchange traded funds, announced the launch of its first proprietary exchange-traded funds: eight new Schwab-managed ETFs with low operating expense ratios and commission-free online trading for clients in their Schwab accounts.

"Schwab has been an innovator on behalf of investors and savers for decades and has endeavored to help them become financially fit. Today, we continue this tradition by offering investors an exceptional value through low cost access to domestic and global equity markets," said Walt Bettinger, Schwab Chief Executive Officer. "Our low cost ETFs can be purchased and sold through Schwab.com commission free. This means that investors of all kinds, and especially those who wish to dollar cost average modest sums, can do so in a cost-effective way. We believe there simply isn't an easier way to buy and sell ETFs than what we're making available to all Schwab clients."

As of November 3, Charles Schwab Investment Management, Inc. (CSIM) is launching its first four ETFs - Schwab U.S. Broad Market ETF, Schwab U.S. Large-Cap ETF Schwab U.S. Small-Cap ETF and Schwab International Equity ETF. In December, CSIM will offer four additional ETFs - Schwab U.S. Large-Cap Growth ETF, Schwab U.S. Large-Cap Value ETF, Schwab International Small-Cap Equity ETF and Schwab Emerging Markets Equity ETF.

Commission-free online trading of Schwab ETFs, the company noted, will be available to individual investors at Schwab, to the more than 6,000 independent investment advisor firms who use Schwab's custodial services through Schwab Advisor Services and through Schwab retirement accounts that permit trading of ETFs. The Schwab ETFs will be listed on NYSE Arca, and can also be traded on other exchanges.

"Investors were first attracted to ETFs in the 1990s because they provided a liquid, low-cost and more tax-efficient way to invest in and trade entire segments of the market," said Peter Crawford, senior vice president at Schwab. "These ETFs will accelerate that growth and appeal to a broad range of investors: from registered investment advisors, to individual investors. Only 16 percent of our individual investors currently own ETFs and 43 percent of advisors who custody with Schwab told us this summer in our semi-annual Advisor Outlook Study, that they plan to increase their usage of ETFs in the next six months. This makes them vehicles with tremendous potential for growth."

Representing an additional step in the firm's ongoing commitment to value in index investing, the company noted the ETF announcement follows changes Schwab made on May 5, when the firm reduced expense ratios and lowered investment minimums on its equity index mutual funds.

The Charles Schwab Corp. is a provider of financial services, with more than 300 offices and 7.6 million client brokerage accounts, 1.5 million corporate retirement plan participants, 667,000 banking accounts, and $1.36 trillion in client assets.

More information:

http://www.schwab.com

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