Boston, MA 09/19/2014 (wallstreetpr) – Charles Schwab Corp (NYSE:SCHW) yesterday reported that it is incorporating seven exchange traded fund (ETF) providers, along with 65 ETFs to its ETF OneSource.
New ETFs
Schwab ETF OneSource is a commission fee, under certain terms, ETF trading provider. The seven ETFs that it is adding include Wisdom Tree Investments, Inc. (NASDAQ:WETF), ProShares, Pimco, IndexIQ, Global X Funds, Direxion Investments and ALPS. Apart from the newly proposed ETF providers, the following are already active on the platform: Charles Schwab Investment Management, United States Commodity Funds, State Street SPDR ETFs, PowerShares, Guggenheim Investments, and ETF Securities.
With seven more ETFs, investors can trade as many as 182 ETFs that cover 65 Morningstar groups without any commissions for online trade at Schwab. There will be no early redemption fees in the online trade, according to an article. In this context, Charles Schwab Corp (NYSE:SCHW)’s Vice President of ETF Platform Management’s, Heather Fischer, said that the company’s decision is based on the understanding trading commissions add up significantly to EFT costs.
No Commission Fee
Charles Schwab Corp (NYSE:SCHW) informed that out of the recently added ETFs, 28 belong to the new participants’ category while 37 belong to existing providers’ list. EFTs trades can be accessed via Schwab EFT OneSource and are free of commissions when made through an online account on Schwab. However, for trade orders that are made via agents or brokers, a service charge is applicable. In the case of trade through broker, commission fee of $25 is chargeable and in case of trade orders made via automated phone, the fee would be $5. Apart from this, for sell transactions, an exchange processing fee will be charged.
Schwab ETF reported $31 billion assets under management on August end. Further, the year-to-date flow in ETFs in the scheme adds up to $5.9 billion. This value represents 45% of the sum ETF flows at Charles Schwab Corp (NYSE:SCHW).
