I am going to pay 50 bucks per year to get out of my employer's choices and gain access to schwab via a PCRA.
http://www.schwab.com/public/schwab/inv ... ounts/pcra
Schwab ETF are free of charge in this plan....just FYI
stlutz wrote:Unfortunately, the "free" ETFs they've added are all relatively high cost. They didn't add lower-cost options from VG or iShares. Did anyone read whether they are getting a kickback of sorts from the providers, sort a hidden 12b-1?
EFT companies do pay Schwab to get on their One Source platfom.
l2ridehd wrote:I just got an EFT brochure from Schwab and they showed there EFT expenses vs Vanguard for there index funds and every one was lower at Schwab. And free trades. Now I have not explored the buy sell gap as I have no plan to change right now, but at least the ER ratios were very attractive.
Just be careful if you are considering investing assets in a taxable account. Schwab is running these low costs ETFs at a loss and may discontinue providing subsidies to the funds (subsidies lower the expenses you pay). Schwab ran a 2% cash-back credit card for a few years before discontinuing it so they have some history in experimenting with new products and killing them if they aren't successful. You could then be stuck with higher expenses and capital gains locking you in at Schwab. Vanguard, by contrast, runs funds at cost, which is a sustainable and scalable approach. If this is in a tax advantaged account with assets already at Schwab or if this account is your only option, knock yourself out -- just keep an eye out for rising expenses or other more costly sales pitches in the future.
I'm coming up on 20 years with Schwab and have been very satisfied. Excellent customer service, dedicated account rep, integration of products and accounts and very "full service" orientated at a ever-decreasing price. The have all the core products plus Coverdell ESA's, checking and savings, mortgages, HELOC - and they even know how to combine mutual funds and ETF's in a single account - wow!
I do miss the 2% back on everything Visa but there are a few others of those still available elsewhere.
leonidas wrote:The fees on the spdr etfs seem reasonable. I have a new Ira at schwab and was planning on using these etfs to fill any gaps of asset classes my tsp is missing.
The combination of the ultra-low cost Schwab ETF's and and the reasonable ER spdr's puts Schwab way ahead of Fidelity in the ETF offerings.
I'm sure some folks would find the target date maturity bond ETF's useful.
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