“Charles Schwab & Co., Inc. receives remuneration from third-party ETF (Exchange Traded Fund) companies participating in Schwab ETF OneSource for recordkeeping, shareholder services, and other administrative services, including program development and maintenance.” Despite this conflict of interest, Schwab ETF OneSource represents a broad list of sensible no-transaction fee ETF choices. Schwab includes its own impressive suite of ETFs in its OneSource list. Download: Schwab ETF OneSource List.
TDAmeritrade maintains an extensive list of commission-free ETFs as well. Download: TD Ameritrade Commission Fee ETFs. Unlike Schwab, TD does not offer proprietary (TD sponsored) ETFs. TD’s no-commission ETF list is compiled by Morningstar, a recognized independent leader in ETF research.
Bottom line, both of these lists are a good thing for investors. However, there is more to ETF investing than buying commision-free. Investors should consider the diversification benefits of a given ETF for their existing portfolio. Don’t rule out an ETF even if you have to pay a commission. Trading volume, bid-ask spreads, fund expense ratio, underlying index and tracking error are often far more important factors than no-commision or no-transaction fee availability.
If you want professional help with ETFs, talk with the ETF experts at Successful Portfolios. Call (727) 744-3614 today.
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