Schwab Cuts Fees on 15 ETFs

ETF Trends

Financial services giant Charles Schwab (SCHW) is the latest exchange traded fund manager to slash the fees charged by its ETFs.

The largest ETF providers have been cutting expense ratios on their products to protect market share and stay competitive on cost.

For example, earlier this month, BlackRock CEO Larry Fink said the firm plans to lower fees on some of its iShares ETFs. [BlackRock Fires Latest Salvo in ETF Fee War]

Schwab in a regulatory filing said 15 ETFs will lower their management fees.

“Schwab’s average expense ratio is the lowest among ETF providers and it appears to be trying to follow Vanguard’s lead,” said Todd Rosenbluth, an analyst at S&P Capital IQ.

The expense ratio reductions were effective Sept. 20, according to the SEC filing.

  • Schwab U.S. Broad Market (SCHB) cut to 0.04% from 0.06%
  • Schwab U.S. Large Cap (SCHX) cut to 0.04% from 0.08%
  • Schwab U.S. Large Cap Growth (NYSEArca: (SCHG) cut to 0.07% from 0.13%
  • Schwab U.S. Large Cap Value (SCHV) cut to 0.07% from 0.13%
  • Schwab U.S. Mid Cap (SCHM) cut to 0.07% from 0.13%
  • Schwab U.S. Small Cap (SCHA) cut to 0.10% from 0.13%
  • Schwab U.S. Dividend Equity (SCHD) cut to 0.07% from 0.17%
  • Schwab International Equity (SCHF) cut to 0.09% from 0.13%
  • Schwab International Small Cap Equity (SCHC) cut to 0.20% from 0.35%
  • Schwab Emerging Markets Equity (SCHE) cut to 0.15% from 0.25%
  • Schwab U.S. TIPS (SCHP) cut to 0.07% from 0.14%
  • Schwab Short-Term U.S. Treasury (SCHO) cut to 0.08% from 0.12%
  • Schwab Intermediate-Term U.S. Treasury (SCHR) cut to 0.10% from 0.12%
  • Schwab U.S. Aggregate Bond (SCHZ) cut to 0.05% from 0.10%
  • Schwab U.S. REIT (SCHH) cut to 0.07% from 0.13%

The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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