Charles Schwab has introduced two new, low-cost variable annuities: The Schwab Genesis Variable Annuity, offered directly to Schwab clients, and the Schwab Genesis Advisory Variable Annuity, available through independent RIAs who custody assets with Schwab Advisor Services.
Both products are offered in collaboration with Protective Life Insurance Company and have base annuity fees 40% to 75% below the industry average, according to Schwab.
SGVA has total variable account annual expenses of 0.45% excluding optional income and death benefit charges, compared to the industry average of 1.15%, Schwab says, citing a Sept. 2, 2020 Morningstar survey of 2,990 variable annuities. SGAVA has total variable account annual expenses of 0.25% excluding optional benefit charges.
The new products offer a broad lineup of 63 professionally managed investment portfolios from 12 different fund families, including the Schwab S&P 500 Index Portfolio, which has a total annual operating expense of 0.03%.
Separately, the firm’s Charles Schwab Investment Management asset management arm has expanded its lineup of fixed income strategies with 20 Wasmer Schroeder Strategies, consisting of tax-exempt and taxable fixed income separately managed accounts including bond ladders and actively managed strategies.
The Wasmer Schroeder Strategies comprise six actively managed strategies, two ultra-short fixed income strategies and 12 bond ladders. More information is available at www.schwab.com/wasmer-schroeder.
Direxion Introduces World Without Waste ETF
Direxion has listed the Direxion World Without Waste ETF (WWOW), which has a 0.50% net expense ratio on the NYSE Arca.