ETF News: Two New ETFs From Schwab; T. Rowe Price Prepares

Schwab now has six commission-free ETFs; T. Rowe to offer active ETFs

Schwab Investment Management announced December 11 that it has launched two new exchange traded funds to join its four other low-priced ETFs that feature no commissions on trades for Schwab customers. The two new funds, each with expense ratios of 0.15%, that began trading on December 11 are the Schwab U.S. Large-Cap Growth ETF (SCHG) and the Schwab U.S. Large-Cap Value ETF (SCHV). The first four Schwab ETFs--U.S. Broad Market (SCHB), U.S. Large-Cap (SCHX), U.S. Small-Cap (SCHA), and International Equity (SCHF)--were launched November 3 by the investment management arm of Charles Schwab Corp.

Charles Schwab Investment Management (CSIM) said the four ETFs launched November 3 had already attracted $209 million as of December 9, with average daily trading volume across the four ETFs of 555,000 shares since their inception.

CSIM also said it plans to launch two new ETFs in January 2010: one for emerging markets and the other for international small-cap stocks.

Meanwhile, ETF guru Tom Lydon reports that T. Rowe Price has filed with the SEC to offer a family of actively managed ETFs, which would mark the low-price mutual fund company's entrance into the exchange traded fund field. Marketwatch's report on the move suggests that T. Rowe will likely offer fixed income ETFs.

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