Schwab ETF Fees Hit Rock Bottom

Discount broker Charles Schwab SCHW, sponsor to some of the least expensive ETFs on the market, is making some of those funds even cheaper. In a filing with the Securities and Exchange Commission, Schwab outlined fee cuts a wide array of its ETFs. Among the Schwab funds with lower expense ratios will be two of the firm's most popular products. The Schwab U.S. Broad Market ETF SCHB will see its fee reduced to 0.04 percent per year from 0.06 percent. The annual expense ratio on the Schwab U.S. Large-Cap ETF SCHX goes to 0.04 percent from 0.08 percent. SCHB has $1.1 billion in assets under management while SCHX had $887.5 million in AUM at the end of August. The Schwab U.S. Large-Cap Growth ETF SCHG, Schwab U.S. Large-Cap Value ETF SCHV. Schwab U.S. REIT ETF SCHH and the Schwab U.S. Mid-Cap ETF SCHM will see annual fees reduced to 0.07 percent from 0.13 percent. The Schwab U.S. Small-Cap ETF SCHA goes down three basis points to 0.1 percent from 0.13 percent. In the dividend space, Schwab slashed the expense ratio on the Schwab U.S. Dividend Equity ETF SCHD to 0.07 percent from 0.17 percent. Schwab also reduced expenses on several of its international funds, including the Schwab International Equity ETF SCHF, which is going to 0.09 percent from 0.13 percent. The Schwab International Small-Cap Equity ETF SCHC will now have an expense ratio of 0.2 percent down from 0.35 percent. Interestingly, the Vanguard MSCI Emerging Markets ETF VWO has lost the title of cheapest emerging markets ETF. That honor now goes to the Schwab Emerging Markets Equity ETF SCHE, which will now charge 0.15 percent compared with 0.25 percent in the past. Fees on the Schwab U.S. TIPS ETF SCHP were cut in half to 0.07 percent from 0.14 percent. The Schwab Short-Term U.S. Treasury ETF SCHO goes to 0.08 percent from 0.12 percent while the Schwab Intermediate-Term U.S. Treasury ETF SCHR will now charge 0.1 percent compared with 0.12 percent in the past. The Schwab U.S. Aggregate Bond ETF SCHZ also cut its fees in half to 0.05 percent from 0.1 percent while the Schwab U.S. REIT ETF SCHH will now charge 0.07 percent, down from 0.13 percent. All that on top of the fact that Schwab offers all of its ETFs on a commission-free basis to its clients. For more on ETFs, click here.