The ETF fee war heated up Monday when TD Ameritrade said it would nearly triple the number of products on its commission-free trading platform to 296.
The expanded platform includes ETFs made by eight fund providers, such as iShares, ProShares, State Street, PowerShares and WisdomTree — but not Vanguard. The added funds will be available to TD Ameritrade’s 5,000 RIA clients and retail investors on the platform starting Tuesday.
“We’ve assembled the largest list of commission-free ETFs in the business, while still retaining our open-architecture approach, with no proprietary ETFs,” said Jim Dario, managing director of product management for TD Ameritrade Institutional, in a statement.
“The new platform will feature some of the biggest names in the ETF industry, with ETFs selected to cover a range of investment strategies and enable investors and advisors to create tailored, diversified portfolios,” he explained.
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Last week, rival Charles Schwab began offering investors shares of the Schwab 1000 Index ETF with an operating expense ratio of five basis points (0.05%). Comparable ETFs from State Street, Vanguard and iShares charge between 10 and 15 basis points.