Schwab slashes fees on more fixed income ETFs

Schwab Asset Management on Monday said it cut fees on the Schwab High-Yield Bond ETF (SCYB) and the Schwab U.S. TIPS ETF, which offers exposure to inflation-protected Treasury securities, to just three basis points, or 0.03%, to attract investors.

That brings the fees for those products to the same level as its other fixed-income ETF products.

Schwab’s high-yield bond offering, launched earlier this year, competes head-to-head with products like the SPDR Portfolio High Yield Bond ETF (SPHY). State Street slashed fees on ten SPDR ETFs in August, including that high-yield bond product.

“Investors continue to consistently rank the expense ratio at the top of the list of the factors they consider most important in owning an ETF,” said David Botset, managing director of equity product management and innovation at Schwab.

Source: REUTER