Schwab Announces Three New Bond ETFs
08/06/2010 0 comments
Charles Schwab announced on Thursday three new, low-cost bond exchange-traded funds with no online trading commissions for Schwab clients.
We view this is a very positive step for Schwab: our recent study showed that, though relatively young, Schwab ETFs have mostly outperformed their counter parts offered by low cost leader Vanguard and volume leader iShares. With the fixed income bond ETFs, it is no getting closer (not completely there yet, though) for an investor to fully build an effective commission free ETF portfolio.
The new Schwab ETFs are treasury bond ETFs. We are looking forward to Schwab filling the missing corporate bond ETFs that, in our view, are the key missing parts right now in fixed income assets. Other key missing asset class is REITs (Real Estate Investment Trusts).