TD Ameritrade says its commission-free ETF platform will nearly double in size next month, jumping to 569 exchange-traded funds from 314. The funds will come from 21 providers and cover about 90 Morningstar categories.
The news comes several months after the firm extended trading to 24 hours five days a week for some popular ETFs, like the SPDR S&P 500, iShares MSCI Emerging Markets ETF and SPDR Gold Trust.
“While we’re pleased to again offer our clients a greater selection of commission-free ETFs, we’re particularly excited about the broad range of strategies, sectors and asset classes available without a commission,” according to Eileen Norton, director of investment solutions at TD Ameritrade Institutional, which works with more than 7,000 RIAs.
ETFs from 12 new providers will be part of the larger lineup, along with funds from 13 more Morningstar categories — such as actively managed ETFs with long-short smart beta and environmental social governance (ESG) strategies. The new ETF providers are Goldman Sachs, VanEck, Nuveen, Pimco, FlexShares, Principal, Global X, John Hancock, IndexIQ, Aberdeen, DWS and USCF.
TD Ameritrade launched its ETF Market Center in 2004 and commission-free ETF trading in 2010. In October 2018, it invested in ErisX, a cryptocurrency exchange working to launch a spot-trading platform; that move came nearly two years after the firm let clients trade Bitcoin futures.
TD Ameritrade’s shares were up 2.4% in extended trading.
“We’re committed to providing our clients access to a robust suite of commission-free products through the ETF Market Center,” said Keith Denerstein, director of investment products and guidance at TD Ameritrade, in a statement.
According to the research group ETFGI, the U.S. ETF market had assets of $3.4 trillion and close to 2,000 products at the end of 2018 vs. $237 billion in 157 ETFs in 2004.
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