Bogleheads rejoice!!! Schwab adds over 200 new ETFs to its lineup! The official press release announcing the additional ETFs is found here.
Schwab Adds Low-Cost iShares and SPDR ETFs
Schwab doubles it’s commission-free ETF lineup to over 500 ETFs to try to fight off competition from Vanguard and Fidelity. Vanguard allows free trading of all standard ETFs that are not inverse or leveraged and Fidelity allows free trading of iShares ETFs. Most important, Vanguard and Fidelity had excellent commission-free options in all asset classes (including international bonds and emerging market bonds) and now Schwab does as well.
Most of the added ETFs in this latest addition are not big news. Only two of the ETFs really matter, in my opinion. Those are the two international iShares ETFs, IAGG and EMB. IAGG is the international bond ETF with a low expense ratio (similar to BNDX by Vanguard) and EMB is the excellent emerging market, dollar denominated emerging markets bond ETF. With both of these ETFs added, you can now build an almost perfect global market portfolio or global asset allocation portfolio just like you could already do at Vanguard and Fidelity.
In addition, now you can buy SPDR core ETFs commission-free. This means that you can now tax-loss harvest the core Schwab ETFs. While this does not matter much to me, it does make Schwab a very compelling option.
I recently wrote a piece on buying ETFs which you can check out here. Come back soon for more on money and my thoughts about personal finance.