Schwab ETFs are Slowly Gaining Traction

Back in November, Schwab started issuing their own proprietary ETFs that are commission free on the Schwab platform. Eight ETFs have been issued so far, and five out of eight have attracted an average trading volume of more than 100,000 shares a day. The total market cap of the ETFs has been steadily growing and now equals $1.1 Billion.

(Data below is taken from the XTF ETF Experts web site).

    Market Cap ADV Expense Ratio
Schwab Equity ETFs   (MM) (000)  
US Broad Mkt SCHB 219.8 193.7 0.08%
US Large Cap SCHX 218.1 167.7 0.08%
US Small Cap SCHA 178.2 158.7 0.15%
Intl Equity SCHF 221.9 166.6 0.15%
US Large Cap Growth SCHG 79.3 67.5 0.15%
US Large Cap Value SCHV 51.8 39.5 0.15%
Intl Small Cap SCHC 43.5 44.7 0.35%
Emerging Mkts SCHE 98.3 120.9 0.35%
  Total 1110.9    

These ETFs all have low expense ratios. Their main drawback is that the average daily trading volume is still well below some of the competition. For active traders or for larger trade sizes, an average trading volume of 1 million shares a day or more would be desirable.

Schwab is working to incorporate these ETFs in their 401K platform. Once this is completed, market cap and average daily volume should expand rapidly from current levels.

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