U.S. Markets open in 8 hrs

Schwab Pares Fees on Two ETFs

ETFtrends.com

Charles Schwab (SCHW), the tenth-largest U.S. issuer of exchange traded funds, slightly lowered the expense ratios on two of its ETFs earlier this month.

The Schwab Emerging Markets Equity ETF (SCHE) now charges 0.14% per year, down from 0.15%. That makes SCHE the least expensive emerging markets ETF. In late February, Vanguard, the third-largest U.S. ETF issuer, announced fee reductions on five of its ETFs, including the Vanguard FTSE Emerging Markets ETF (VWO) . VWO, the largest emerging markets ETF by assets, charges 0.15% per year. [Vanguard Lowers Fees on Five ETFs]

Schwab also reduced the expense ratio on the Schwab International Small-Cap Equity ETF (SCHC) to 0.19% from 0.2%. The fee cuts were announced in a filing with the Securities and Exchange Commission and went into effect on March 5.

The ETF fee war appears to be alive and well. Earlier this year, State Street’s (STT) State Street Global Advisors, the second-largest U.S. ETF issuer, announced lower fees on its nine sector SPDR ETFs. Those ETF now charge 0.16% per year, down from 0.18%. [State Street Lowers Fees on Sector SPDRs]

Schwab Emerging Markets Equity ETF

ETF Trends editorial team contributed to this post.

The opinions and forecasts expressed herein are solely those of Tom Lydon, 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.