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Schwab Adds Midcaps and REITs to ETF Lineup
January 19, 2011
SAN DIEGO (ETFguide.com) – Charles Schwab has just added the Schwab U.S. REIT ETF (NYSEArca: SCHH) and the new Schwab U.S. Mid-Cap ETF (NYSEArca: SCHM) to its ETF lineup.
“Individual investors, traders and advisors continue to demand ETFs at a low cost that can function as building blocks in their portfolios,” said Tamara Bohlig, vice president of product management at Schwab. “Our newest ETFs are part of Schwab’s ongoing commitment to offering broad exposure to core market segments at a compelling value.”
Schwab has expanded its existing ETF menu to 13 equity and fixed income ETFs. Like all other Schwab ETFs, they can be bought and sold commission-free online in Schwab brokerage accounts.
The Schwab U.S. REIT ETF and Schwab U.S. Mid-Cap ETF began trading on Thursday, January 13, 2011.
SCHH is linked to the Dow Jones U.S. Select REIT Index and holds around 82 real estate stocks. SCHM is linked to the Dow Jones U.S. Mid-Cap Total Stock Market Index which contains roughly 495 stocks.
Both ETFs charge annual expenses of 0.13%.
Schwab ETFs had $2.7 billion in assets under management at the end of 2010.
ETF Fee Reductions
In other ETF news, BlackRock lowered the annual expense ratios on 34 iShares ETFs as part of its move to comply with breakpoints listed in its SEC filings.
Among the foreign ETFs impacted by the changes are the iShares MSCI Brazil Index Fund (NYSEArca: EWZ), iShares MSCI Japan Index Fund (NYSEArca: EWJ) and iShares MSCI Emerging Markets Index Fund (NYSEArca: EEM).
EWZ’s annual expense ratio went from 0.65% to 0.61%, EWJ went from 0.56% to 0.54% and EEM went from 0.72% to 0.69%.
Most of the funds affected by the fee reductions are single country ETFs that invest in stocks from a particular nation.
Up Against the Grail
Grail Advisors, a San Francisco, CA-based money manager for actively managed ETFs is mulling the sale of itself. The firm has been struggling to attract new money from investors and might be forced to liquidate if a sale agreement isn’t reached.
Grail sponsors the Grail American Beacon Large Cap Value ETF (NYSEArca: GVT) which had just $1.6 million in assets in December 2010. Altogether the company has five ETFs with around $20 million in assets.
The potential sale was disclosed in early January in a filing with the Securities and Exchange Commission. |
