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Portfolio > ETFs

Schwab ETF OneSource Assets Surged 34% in 2016

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Assets in Schwab ETF OneSource reached $65.4 billion as of Nov. 30, growing by 34% overall in 2016.

Schwab ETF OneSource offers investors and advisors access to more than 200 commission-free ETFs with no enrollment requirements and no early redemption fees.

“Schwab ETF OneSource is growing in every way – we’ve added to both our provider and fund ranks in the last year, and continue to offer investors of all sizes the most choice when it comes to commission-free ETFs,” Heather Fischer, vice president of ETF Platform Management at Charles Schwab, said in a statement.

Some of OneSource’s growth over the past year can be attributed to the advisor channel. According to Schwab, assets of RIA clients on the OneSource platform grew 33% in 2016. Retail clients’ assets grew from $24.6 billion as of Dec. 31, 2015, to $32.8 billion as of Nov. 30.

In addition, assets of retail clients grew 35% over the past year – from $24.2 billion as of Dec. 31, 2015 to $32.6 billion as of Nov. 30.

The OneSource growth includes Schwab’s robo-offering, Intelligent Portfolios, which launched in March 2015. (Investment choices offered by Schwab Intelligent Portfolios include 54 low-cost ETFs from Schwab and third-party providers including Vanguard, iShares and PowerShares, with access to up to 20 globally diversified assets, including stocks, bonds, real estate, commodities and cash.)

November year-to-date flows into ETFs in the OneSource program are $11.8 billion, representing 53% of the total ETF flows at Schwab.

In 2016, 35 funds were added to Schwab ETF OneSource. Notable additions to the program in 2016 range from welcoming two new providers – John Hancock Investments and Deutsche Asset Management – to strengthening the lineup of socially conscious funds with the addition of the SPDR SSGA Gender Diversity ETF (SHE). (A complete list of Schwab ETF OneSource ETFs is available here.)

“In 2016 we expanded our product offering to meet ETF investor demands, including adding several new Morningstar categories,” Fischer said in a statement. “We continue to broaden investor access across several high-demand categories such as socially conscious funds, strategic beta funds, bond ETFs and currency-hedged products.” OneSource Adds OppenheimerFunds

On Wedensday, Schwab announced that it is adding one new ETF provider – OppenheimerFunds – and 12 new ETFs to its OneSource lineup.

With these additions, the program allows investors and advisors to buy and sell 228 ETFs covering 69 Morningstar categories.

OppenheimerFunds joins 15 other leading ETF providers that participate in the Schwab ETF OneSource program. They include ALPS, Deutsche Asset Management, Direxion, ETF Securities, Global X Funds, Guggenheim Investments, IndexIQ, John Hancock Investments, J.P. Morgan Asset Management, PIMCO, PowerShares, State Street SPDR ETFs, USCF, WisdomTree and Charles Schwab Investment Management.

Beginning Wednesday, four of the Oppenheimer Revenue Weighted ETF strategies are available to Schwab clients: Oppenheimer Large Cap Revenue ETF (RWL), Oppenheimer Mid Cap Revenue ETF (RWK), Oppenheimer Small Cap Revenue ETF (RWJ), and Oppenheimer Ultra Dividend Revenue ETF (RDIV).

The other new ETFs added to the OneSource lineup include Deutsche X-trackers FTSE Developed Ex US Comprehensive Factor ETF (DEEF), Deutsche X-trackers Russell 1000 Comprehensive Factor ETF (DEUS), Guggenheim BulletShares 2024 High Yield Corp Bond ETF (BSJO), Guggenheim BulletShares 2026 Corp Bond ETF (BSCQ), SPDR MSCI EAFE StrategicFactors ETF (QEFA), SPDR S&P North American Natural Resources ETF (NANR) and WisdomTree CBOE S&P 500 Put Write Strategy ETF (PUTW).

“Our research indicates that investors and advisors are steadily allocating more of their portfolios to ETFs, and a broad selection of both ETF categories and ETF providers are critical criteria when evaluating ETFs that are available for zero commission online,” Fischer said in a statement. “Schwab ETF OneSource delivers on both, which explains the traction we’ve achieved in just four short years since launching the program.”

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