Schwab squeezes operating fees with low-cost ETF range for the US

Charles Schwab Investment Management (CSIM) has unveiled two proprietary exchange-traded funds (ETFs) as part of its range of low-cost ETFs that aim to cut operating fees aggressively.
The Schwab US Large-Cap Growth ETF and the Schwab US Large-Cap Value ETF are listed on the New York Stock Exchange’s Arca platform. The funds’ operating fee is 0.15%.

CSIM launched its first proprietary ETFs in November: the Schwab US Broad Market ETF, Schwab US Large-Cap ETF, Schwab US Small-Cap ETF and Schwab International Equity ETF. The Broad Market fund has an operating expense ratio of 0.08%, undercutting closest rival Vanguard by 0.01%. The fees on the comparative iShares product are 0.21%, according to CSIM. The funds have attracted $209 million in assets under management, and trading volume across the four ETFs has averaged roughly half a million shares per day.

CSIM is not charging online commission to individual investors, financial advisers, or retirement accounts to trade its proprietary ETFs in an attempt to distinguish itself by competitive pricing.
The firm plans to complete the range with two further funds in January, the Schwab International Small-Cap Equity ETF and Schwab Emerging Markets Equity ETF.