The ability to buy and sell funds without paying any brokerage commissions is one of the biggest trends in the booming ETF marketplace.
Not only is it drastically reducing the cost of ETF investing, but it’s directly influencing ETF asset flows.
Let’s look at some of the biggest and boldest players in this rapid evolving space:
In February, the San Francisco-based broker expanded its list of commission-free ETFs to a total of 105 ETFs by launching its Schwab ETF OneSource platform.
The company’s ETF list covers major asset classes, with fund families like State Street SPDR ETFs, Guggenheim Investments, PowerShares, ETF Securities, United States Commodity Funds, and Charles Schwab ETFs.
“Just as Schwab Mutual Fund OneSource changed the landscape for investors and advisors by providing convenient, affordable access to leading mutual funds when Chuck Schwab introduced it 20 years ago, we believe Schwab ETF OneSource will deliver enormous benefit and change the way our clients buy and sell ETFs,” said Walt Bettinger, CEO of Charles Schwab (SCHW), in a statement.
Non-Schwab ETFs added to the company’s commission-free trading platform include the Guggenheim S&P 500 Equal Weight ETF (RSP), PowerShares S&P 500 Low Volatility ETF (SPLV), Guggenheim BRIC ETF (EEB) and the ETFS Physical Precious Metals Basket Shares (GLTR).
If you want one access to one of the broadest lists of commission-free ETFs, TD Ameritrade (AMTD) is a good place to start. The brokerage firm offers up 100-plus ETFs on its list.
The broker has commission free trades on 47 iShares, 32 Vanguard ETFs and 12 State Street Global (SPDR) ETFs. While you won’t find huge-volume ETFs like the SPDR S&P 500 ETF (SPY) on the list, you’ll still get a great choice in lesser-known funds covering important asset classes, like international TIPS (WIP), international real estate (RWX), and international small-cap stocks (VSS).