Categories: Exchange Traded Funds (ETFs)U.S. Investing

How to Make the Most of Charles Schwab’s Broad ETF Providings

Charles Schwab’s discount investing company offers one of the industry’s widest selections of exchange-traded funds (ETFs). The company recently fully embraced the world of ETFs with the launch of its ETF OneSource marketplace.

ETF OneSource offers commission-free trading on approximately 100 ETFs from five different providers, including some providers that recently have been featured in ETF Talks — Guggenheim, PowerShares and SPDR. Additionally, all of Schwab’s own 21 ETFs are available for trading commission-free.

Another innovation offered by Schwab in the ETF field is the Fundamental Index ETF. A Fundamental Index ETF measures companies by their sales, their operating cash flow and their return to shareholders in the form of buybacks and dividends. One such ETF is the Schwab Fundamental U.S. Small Company Index ETF (FNDA).

FNDA has made a 2.25% gain in the first three tumultuous months of this year. From its inception in August 2013, it has risen nearly 16%, and the fund issued dividends in October and December.

In addition to its Fundamental Index ETFs, Schwab also offers more traditional market-cap weighted ETFs. Charles Schwab & Co. does not itself offer the widest breadth and depth of ETFs, but they do offer their investment customers a commission-free introduction to the wider world of ETFs.

The investment firm has been an innovator in the past by introducing trading by phone in 1989, trading online in 1996 and a mobile app in 2010.

If you want my advice about buying and selling specific ETFs, including appropriate stop losses, please consider subscribing to my Successful Investing newsletter. As always, I am happy to answer any of your questions about ETFs, so do not hesitate to send me an e-mail. You just may see your question answered in a future ETF Talk.

In case you missed them, I encourage you to read my articles from previous weeks about ETF providers Guggenheim, PowerShares, WisdomTree, First Trust, ProShares, Vanguard, iShares and State Street. I also invite you to share your thoughts below.

Doug Fabian

Doug Fabian is the Editor of Weekly ETF Report, a free weekly e-newsletter, and the newsletter Successful ETF Investing. He’s also the host of the syndicated radio show, “Doug Fabian’s Wealth Strategies.” Doug also edits the fast-paced trading service ETF Trader’s Edge, for investors who want to take their profits to the next level. Taking over the reins from his dad, Dick Fabian, back in 1992, Doug has continued to uphold the reputation of the newsletter as the #1 risk-adjusted market timer as ranked by Hulbert’s Investment Digest. Doug became a member of the “SmartMoney 30” in 1999 — a listing of the most influential individuals in the mutual fund industry. In the feature, SmartMoney magazine exclaims that Doug is the best-known “trend follower” among the $56 billion (and growing) group of financial advisors. In 2001, Doug wrote “Maverick Investing,” published by McGraw-Hill. He also regularly appears at seminars around the country, stands out on the pages of the largest newspapers (The Wall Street Journal, The Los Angeles Times, and The New York Times), and speaks on national television (CNBC, Fox News, and Bloomberg Forum). For more than 35 years, Successful ETF Investing (formerly the Telephone Switch Newsletter and Successful Investing) has produced double-digit percentage annual gains. Doug has become known for his expert knowledge and timely use of innovative tools, such as exchange-traded funds, bear funds, and enhanced-index funds to profit in any market climate. For more information about Doug’s services, go to http://www.fabian.com/