ETF Daily News
Schwab Eyes Commission-Free ETF Supermarket
December 10, 2012
Charles Schwab, the discount brokerage firm, is working toward including a broad variety of commission-free ETFs from different sponsors onto its product platform, but the plan is at a standstill because the cost to participating fund firms looks to be too high, according to an article by Reuters.
If Schwab is successful, it will be one of the first brokerage firms to charge the marketing fee— known as 12b-1—in the ETF market, which, in turn, could be the start of a new chapter in the ETF industry, the article said.
While Schwab’s plan could boost assets in ETFs, the firm’s plan could ultimately put upward pressure on the cost of using ETFs, according to Reuters.
Visit Reuters.com for the full story.
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