All of Schwab’s Bond ETFs Now Cost Just Three Basis Points
- Average fee across 633 US-listed bond ETFs is 34 basis points
- Small fee cuts can fuelmillions of dollars worth of inflows
Charles Schwab office building in New York.
Photographer: Victor J. Blue/BloombergThis article is for subscribers only.
Schwab Asset Management is making an aggressive attempt to offer some of the cheapest bond exchange-traded funds on the market.
The asset manager announced Monday that will cut fees on the $50 million Schwab High Yield Bond ETF (ticker SCYB) and the $11.6 billion Schwab U.S. TIPS ETF (SCHP) to just three basis points, bringing all nine of its fixed-income funds below that threshold, according to a press release Monday. The average expense ratio among the 633 US-listed bond ETFs is about 35 basis points, Bloomberg data show.