Daily ETF Watch: Schwab To Self Index

Latest filing from Charles Schwab is a standard exemptive relief request.

Reviewed by: Heather Bell
Edited by: Heather Bell

Charles Schwab filed paperwork with the Securities and Exchange Commission that provided more detailed information about its plans for its ETF lineup, including plans to create its own indexes. The new exemptive relief request goes beyond the firm’s original 40-APP filing from 2009 that mainly covers passively managed international and domestic fixed-income and equity securities funds.


Still, the latest filing follows what seems to be a standard template used by many other ETF providers—at least since self-indexing became more popular in the ETF industry. The filing outlines plans for self-indexed funds, including domestic and international fixed-income and equity ETFs, 130/30 ETFs and long/short ETFs.


The move indicates that Schwab is looking to expand its lineup from the selection of core funds it currently offers. The firm’s largest fund, the Schwab U.S. Broad Market ETF (SCHB | A-100) has more than $5 billion in assets under management, and Schwab’s lineup of 21 funds has a total of $34 billion in AUM.


Similar exemptive relief filings have been made recently by Recon Capital and ARK Investment Management.


Schwab also filed an exemptive relief request in 2012 to launch actively managed funds, but has yet to roll out any active products under that filing. 



Heather Bell is a former managing editor of etf.com. She has also held editorial positions at Dow Jones Indexes and Lehman Brothers. Bell is a graduate of Dartmouth college and resides in the Denver area with her two dogs.