Charles Schwab announced yesterday it would be adding 18 funds to its OneSource ETF platform. OneSource allows investors to trade certain ETFs without paying any commission. Although there are several commission-free ETF platforms, Schwab’s is one of the most comprehensive and encompasses several ETF providers.
The last significant expansion of the OneSource platform occurred last September, with the addition of 16 funds and seven ETF issuers. The concept was originally launched in early 2013.
The newly added ETFs will be commission-free on OneSource as of Feb. 1, and will bring the total number of funds covered by the program to 198. That includes all of the Schwab ETFs, and funds from 12 other participating firms.
Schwab considers the OneSource platform a resounding success, noting it had $38 billion in assets under management at the end of 2014, and that its $10 billion in inflows for that year represented roughly 43 percent of Schwab’s total inflows.
Its inclusivity is perhaps one of its hallmarks among the best-known platforms of this kind. Vanguard’s fee-free ETF platform includes only its own ETFs, and Fidelity’s fee-free program is limited to the firm’s own funds and about 70 iShares.
The Schwab platform also doesn’t require any sort of enrollment, and there are no short-term trading fees, Schwab said.
“The traction we’ve been able to achieve in a relatively short period speaks volumes about the importance of cost when it comes to selecting an ETF,” said Heather Fischer, Schwab’s vice president of ETF platform management.
The OneSource additions include the following:
- Direxion iBillionaire Index ETF (IBLN)
- PowerShares DWA Developed Markets Momentum Portfolio (PIZ | C-37)
- PowerShares DWA Emerging Markets Momentum Portfolio (PIE | C-41)
- PowerShares DWA Momentum Portfolio (PDP | B-56)
- PowerShares DWA SmallCap Momentum Portfolio (DWAS | B-47)
- PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio (PAF | C-67)
- ProShares Investment Grade - Interest Rate Hedged (IGHG | C)
- ProShares Morningstar Alternatives Solution ETF (ALTS)
- SPDR BofA Merrill Lynch Crossover Corporate Bond ETF (XOVR | C)
- SPDR MSCI Mexico Quality Mix ETF (QMEX)
- SPDR MSCI South Korea Quality Mix ETF (QKOR)
- SPDR MSCI Taiwan Quality Mix (QTWN)
- SPDR Russell Small Cap Completeness ETF (RSCO | B-87)
- SPDR MSCI ACWI Low Carbon Target ETF (LOWC)
- WisdomTree Barclays U.S. Aggregate Bond Zero Duration Fund (AGZD | B-41)
- WisdomTree BofA Merrill Lynch High Yield Bond Zero Duration Fund (HYZD | C-61)
- WisdomTree Bloomberg U.S. Dollar Bullish Fund (USDU | 67)
- WisdomTree Global ex-U.S. Dividend Growth Fund (DNL | C-57)