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Schwab Adds International Stocks to its ETF Lineup
January 18, 2010
SAN DIEGO (ETFguide.com) – Charles Schwab Investment Management (CSIM) has just introduced two exchange-traded funds (ETFs) that follow emerging markets and international small cap stocks. The new launch brings Schwab’s current menu of ETF offerings to eight.
The latest two funds are the Schwab Emerging Markets Equity ETF (NYSEArca: SCHE) and the Schwab International Small-Cap Equity ETF (NYSEArca: SCHC). Both funds began trading on January 14th, 2010.
SCHE follows the FTSE All Emerging Index, a benchmark of around 750 emerging market stocks. SCHC is linked to the FTSE Developed Small Cap ex-U.S. Liquid Index which consists of roughly 2,000 international small cap stocks.
The first four Schwab ETFs - U.S. Broad Market (NYSEArca: SCHB), U.S. Large-Cap (NYSEArca: SCHX), U.S. Small-Cap (NYSEArca: SCHA) and International Equity (NYSEArca: SCHF) were launched in early November. In addition, the Schwab U.S. Large-Cap Growth ETF (NYSEArca: SCHG) and the Schwab U.S. Large-Cap Value ETF (NYSEArca: SCHV) were launched on December 11th.
As of January 12th, CSIM had $419 million in assets under management in the first six Schwab ETFs, and trading volume has increased steadily across the six ETFs since inception.
“Individual investors and investment advisors count on Schwab for products that provide exceptional value, and our clients have indicated an interest in ETFs as a way to invest in and trade entire segments of the market,” said Peter Crawford, senior vice president at Charles Schwab.
The new Schwab ETFs each have an expense ratio of 0.35%. Like the first six funds, the two new Schwab-managed ETFs can be bought and sold commission-free online in Schwab accounts.
In addition, the board of trustees for the Schwab ETF Trust approved the termination of the 12b-1 distribution and marketing fees. Even though most ETFs do not charge 12b-1 fees, many fund families have the flexibility of charging them.
“We've eliminated our Rule 12b-1 plan to simplify our pricing and remove the potential additional costs,” said Crawford. “This change reaffirms our commitment to providing clients with optimal value in our relationship with them.”
In related new product news, trading in the ETFS Physical Platinum Shares (NYSEArca: PPLT) and the ETFS Physical Palladium Shares (NYSEArca: PALL) began last week.
Palladium is largely used for automobile catalytic converters, but it’s also used in coinage production, dentistry, watch making. Russia is a top producer of palladium followed by Canada and South Africa.
Platinum is used to produce jewelry, hard disk drive coatings, and fiber optic cables along with other industrial applications. The metal has a silvery white appearance, it doesn’t oxidize and it’s more precious than gold or silver.
PPLT and PALL are both backed by platinum and palladium allocated bullion in plate and ingot form stored in secure vaults in London and Switzerland. JPMorgan Chase Bank serves as the custodian for both trusts. Unlike metals futures contracts, the physical platinum and palladium allocated bullion within each trust is subject to minimal counterparty or credit risks.
Both trusts charge 0.60% in annual expenses. |
