Schwabs expansion into the etf market will give them a great new revenue generator from people outside of schwab who buy the etfs that they have. Watch for earnings estimates to rise when they get rolling, making Schwab a strong buy at theseprice levels.
I agree that SCHW is 5 years to late in the ETF arena. I think the only reason they are entering now is that they are scared of losing assets from their open end Mutual Fund Onesource program, and SCHW is all about asset retention. The downside is that ETF's are a very low margin business compared to open end funds. Plus SCHW will never spend the money that is required to market the ETF's and/or attrract the talent to run them. In summary, I really think this is a non-event for the stock price.