Schwab ETF Assets Soar In 2010

Charles Schwab SCHW, the largest U.S. discount broker, has made quite a name for itself in a short amount of time in the ETF business, as the total ETF assets held by the California-based company surged 34% to $111 billion last year. That figure includes third-party funds and ETFs that Schwab issues. Upon entering the ETF game in late 2009, Schwab made its presence felt immediately by offering commission free trading on its ETFs for Schwab clients. Schwab has an approach similar to Vanguard's in an effort to gain traction in the ETF market and that is to create funds that closely resemble existing products, but to offer lower expenses in a bid to attract customers. Schwab said in a statement Monday that at the end of 2010, retail investors owning ETFs had increased their asset levels by more than 61% over the past year and now account for 37% of total ETF assets held at the company, Barron's reported. Schwab's lineup currently includes 14 ETFs.