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Schwab Adds 18 ETFs to Commission-Free OneSource

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On Sunday, investors will be able to access 198 exchange-traded funds covering 64 Morningstar categories for no online trade commissions through Charles Schwab’s ETF OneSource platform.

Schwab announced Monday that it would add 18 more ETFs to Schwab ETF OneSource, the program that offers investors the most commission-free ETFs anywhere in the industry.

“Nearly two years and 200 commission-free ETFs after launching Schwab ETF OneSource, investors are embracing the choice and value it offers,” said Heather Fischer, vice president of ETF Platform Management at Charles Schwab, in a statement. “The traction we’ve been able to achieve in a relatively short period speaks volumes about the importance of cost when it comes to selecting an ETF, and we are excited to be able to continue to expand this program to meet investor demand.”

The new additions to OneSource include momentum ETFs, additional single-country ETFs, a bullish dollar ETF and nontraditional bond ETFs, to name a few — thanks to five current providers, Direxion Investments, PowerShares, ProShares, State Street SPDR and WisdomTree.

OneSource includes funds from 13 leading providers — ALPS Advisors Inc., Direxion, ETF Securities, Global X Management Co., Guggenheim Investments, IndexIQ, PIMCO, PowerShares, ProShares, State Street SPDR, United States Commodity Funds, WisdomTree and Charles Schwab Investment Management.

Schwab ETF OneSource has $38 billion in assets under management as of Dec. 31. Flows into ETFs in the program were over $10 billion in 2014, representing 43% of the total ETF flows at Schwab.

Fischer attributed much of Schwab’s overall ETF success — ETF assets at Charles Schwab were up 20% year over year as of Sept. 30 — to its OneSource platform.

“I think a lot of the growth and positive trends we see in the snapshot overall are a strong reflection of the success of the ETF OneSource program, which we continue to see performing very, very well,” said Heather Fischer, Vice President of ETF Platform Management at Schwab, in a previous interview with ThinkAdvisor.

In September, Schwab added 65 ETFs to its fee-free platform, as well as a slew of new providers at that time. The providers who joined at that time included OneSource are ALPS, Direxion Investments, Global X Funds, IndexIQ, PIMCO, ProShares and WisdomTree.

Schwab does not have any enrollment requirements or charge early redemption fees for the ETFs in the program, which it says are two key differentiators for investors comparing similar commission-free ETF programs.

Commission-free online trading is available to individual investors at Schwab, to approximately 7,000 independent investment advisors who use Schwab’s custodial services and through Schwab retirement accounts that permit trading of ETFs.

Here is a complete list of Schwab OneSource ETFs.

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