Schwab Hits Two Major ETF Milestones

Nov.11.10 | About: The Charles (SCHW)

Charles Schwab (NYSE:SCHW) announced today that ETF assets held by its individual investor and independent advisor clients have exceeded $100 billion.

About 25% of all ETFs held by retail investors are custodied at Schwab, and the brokerage also has a large number of fee-only advisors who are very loyal.

The mark was achieved in part because of the early success of Charles Schwab’s own ETF products, the provider and brokerage said. Schwab’s ETF line just crossed the $2 billion mark just a little more than a year after their debut.

Murray Coleman for Barrons reports that the milestones underscore the growing weight that retail investors have in the industry. The trend could further grease the wheels for the industry’s growth.

Schwab’s entrance into the ETF space was no small thing; many believe that it was the first salvo in a full-blown price war between brokerages and ETF providers. The result so far has been lower fees and the reduction or elimination of many commissions.

Schwab believes they are the go-to provider for these low cost, popular investment tools.The first Schwab ETFs were launched just one year ago in a bold move that allowed Schwab clients to trade the ETF shares with no commissions online through a Schwab account.

We certainly know Schwab’s appeal – our clients’ accounts are custodied there, and we happen to own Schwab U.S. Small-Cap (NYSEArca: SCHA), as well.

Tisha Guerrero contributed to this article.

Disclosure: Long SCHA