In an aggressive move to attract more assets, Charles Schwab reduced the annual expense ratios on its 15 ETFs.
“In this period of uncertainty in the markets, the expenses investors pay are the only sure thing,” said CEO Walt Bettinger. “As a longtime advocate for investors, we want to offer our clients a truly low-cost way to build a diversified portfolio.”
For large cap stocks, the Schwab U.S. Large Cap Fund (SCHX) charges just 0.04% versus 0.10% for the Vanguard Large Cap Fund (VV) and 0.09% for the SPDR S&P 500 ETF (SPY).
Lower fees could help SCHX and other Schwab ETFs to garner more money from investors as they switch to lower cost funds. At the beginning of September, SCHX has less than $1 billion under management compared to $5.9 billion in VV and $105 billion.