RETAIL REPORT: Schwab ETF OneSource Expands Commission-Free Lineup

Traders Magazine Online News, August 7, 2019

John D’Antona Jr.

Mega retail brokerage Schwab has upped the commission-free ETF ante once again.

The brokerage firm announced it has added 25 ETFs to Schwab ETF OneSource™, one of the first commission-free ETF programs in the industry. Clients can now access 539 ETFs covering 83 Morningstar Categories with $0 online commissions. Schwab ETF OneSource doesn’t charge enrollment requirements, early redemption fees and activity assessment fees.

“In Schwab’s 2019 ETF Investor Study, investors said a broad selection of ETF categories and no additional fees are critical differentiators when evaluating commission-free ETF programs²,” said Kari Droller, vice president of third-party mutual fund and ETF platforms at Schwab. “From day one, our priority with the Schwab ETF OneSource program has been to provide a broad lineup of commission-free ETFs that spans a variety of asset classes and index weightings to make it simple for investors and advisors to build highly diversified, commission-free ETF portfolios.”

Schwab ETF OneSource offers commission-free ETFs from 15 leading providers: Aberdeen Standard Investments, ALPS, DWS Group, Direxion, Global X Funds, IndexIQ, Invesco ETFs, iShares ETFs, John Hancock Investment Management, J.P. Morgan Asset Management, PIMCO, State Street Global Advisors SPDR® ETFs, USCF, WisdomTree and Charles Schwab Investment Management. The 83 Morningstar categories covered on Schwab ETF OneSource represent 98.79% of ETF assets in the industry³.

The 25 ETFs added are from seven providers and cover a range of Morningstar categories including Muni National Intermediate, Consumer Defensive, and Consumer Cyclical.

The funds added to Schwab ETF OneSource on July 9 are:

Fund Name	Ticker	Morningstar Category
Direxion FTSE Russell International Over US ETF	RWIU	Foreign Large Blend
Direxion FTSE Russell US Over International ETF	RWUI	Large Blend
Direxion MSCI Cyclicals Over Defensives ETF	RWCD	Consumer Cyclical
Direxion MSCI Defensives Over Cycles ETF	RWDC	Consumer Defensive
Direxion MSCI Developed Over Emerging Markets ETF	RWDE	World Large Stock
Direxion MSCI Emerging Over Developed Markets ETF	RWED	Diversified Emerging Markets
Direxion Russell 1000® Growth Over Value ETF	RWGV	Large Growth
Direxion Russell 1000® Value Over Growth ETF	RWVG	Large Value
Direxion Russell Large Over Small Cap ETF	RWLS	Large Blend
Direxion Russell Small Over Large Cap ETF	RWSL	Small Blend
Global X Cloud Computing ETF	CLOU	Technology
Global X MSCI Argentina ETF	ARGT	Miscellaneous Region
Global X MSCI China Financials ETF	CHIX	China Region
IQ MacKay Shields Municipal Insured ETF	MMIN	Muni National Intermediate
IQ MacKay Shields Municipal Intermediate ETF	MMIT	Muni National Intermediate
John Hancock Multifactor Media and Communications ETF	JHCS	Communications
JPMorgan BetaBuilders 1-5 Year US Aggregate Bond ETF	BBSA	Short-Term Bond
JPMorgan BetaBuilders Canada ETF	BBCA	Miscellaneous Region
JPMorgan BetaBuilders Developed Asia ex-Japan ETF	BBAX	Pacific/Asia ex-Japan Stock
JPMorgan BetaBuilders Europe ETF	BBEU	Europe Stock
JPMorgan BetaBuilders Japan ETF	BBJP	Japan Stock
JPMorgan Core Plus Bond ETF	JCPB	Intermediate Core-Plus Bond
JPMorgan Corporate Bond Research Enhanced ETF	JIGB	Corporate Bond
PIMCO Enhanced Low Duration Active ETF	LDUR	Short-Term Bond
SPDR® S&P Kensho New Economies Composite ETF	KOMP	Technology

Schwab ETF OneSource Assets Continue to Grow

To date in 2019, Schwab ETF OneSource has added 285 funds to the program, more than doubling the number of commission-free ETFs available to clients compared to last year. Assets in Schwab ETF OneSource were $182 billion as of May 31, 2019, up 81% compared to the same period in 2018. Year to date flows into ETFs in Schwab ETF OneSource are $13 billion, representing 70% of the total ETF flows at Schwab.

A complete list of Schwab ETF OneSource ETFs is available here.

Schwab ETF OneSource offers investors and advisors access to 500+ commission-free ETFs. Commission-free online trading is available to individual investors at Schwab, to approximately 7,000 independent investment advisors who use Schwab’s custodial services and through Schwab retirement accounts that permit trading of ETFs.

For more information on related topics, visit the following channels:

• ETFs
• Retail/Individual