The battle for your investment dollar is heating up now that Charles Schwab has introduced 15 new exchange-traded funds (ETFs) that you can buy and sell commission-free.
If you’re not familiar with ETFs, they are a class of investment that’s both similar and different from an index fund.
They’re similar in the sense that buying one offers you ownership of tiny slices and dices of hundreds or thousands of companies. But ETFs are different than index funds when it comes to annual expenses. Most ETFs have lower expenses than traditional index funds.
For example, Schwab’s Total Stock Market ETF charges expenses of only 0.03% per year. That means only three cents out of every $100 you have invested goes toward expenses instead of working for you. That’s cheap!
Read more: ETF Guide
Here are Schwab’s new commission-free ETFs
Effective July 6, Schwab rolled out 15 new ETFs with $0 online commissions, no enrollment requirements and no early redemption fees. That brings the company’s ETF platform to a total of 245 commission-free offerings.
Here’s a list of the latest offerings:
ETFs are a hot area of growth for Charles Schwab. The brokerage’s ETF assets grew by 22% from January 1 through May 31 after a $10.8 billion influx of money during those five months alone.
In total, Schwab’s customers have invested $84 billion (through May 31, 2017) in its commission-free ETFs.
Of course, Schwab isn’t alone in offering ETFs with no commissions to buy or sell. A lot of players including Vanguard, Fidelity and TD Ameritrade also offer $0 commission ETF.
But Schwab differentiates itself with no enrollment requirements and no early redemption fees.
Read more: Clark’s investment guide