Archive for the ‘TDAmeritrade’ Tag
Exchange-traded funds, those high-tech hybrids of diversified mutual funds and shares have been cheap and are getting even cheaper.
TD Ameritrade announced on Friday that it will permit customers to trade more than 100 ETFs commission-free, following similar moves by Charles Schwab, Fidelity Investments, and Vanguard Group over the past year.
The price war in the US ETF industry was initially sparked by Charles Schwab, which launched eight fee-free ETFs last year. The eight EFTs are:
- U.S. Broad Market (SCHB)
- U.S. Large-Cap (SCHX)
- U.S. Small-Cap (SCHA)
- International Equity (SCHF)
- U.S. Large Cap Growth (SCHG)
- U.S. Large-Cap Value (SCHV)
- International Small-Cap Equity (SCHC)
- Emerging Markets Equity (SCHE)
On February 3, 2010 Fidelity Investments teamed up with iShares to eliminate trading fees on 25 iShares ETFs. See list below:
U.S. EQUITY INDEX FUNDS
- Russell 1000 Growth (IWF)
- Russell 1000 (IWB)
- Russell 1000 Value (IWD)
- Russell 2000 Growth (IWO)
- Russell 2000 (IWM)
- Russell 2000 Value (IWN)
- Russell 3000 (IWV)
- S&P 500 Growth (IVW)
- S&P 500 (IVV)
- S&P 500 Value (IVE)
- S&P Mid Cap 400 Growth (IJK)
- S&P Mid Cap 400 (IJH)
- S&P Mid Cap 400 Value
- S&P Small Cap 600 Growth (IJT)
- S&P Small Cap 600 (IJR)
- S&P Small Cap 600 Value (IJS)
INTERNATIONAL EQUITY INDEX FUNDS
- MSCI ACWI (ACWI)
- MSCI EAFE (EFA)
- MSCI EAFE Small Cap
- MSCI Emerging Markets (EEM)
FIXED INCOME FUNDS
- Barclays Aggregate (AGG)
- Barclays TIPS (TIP)
- iBoxx $ Investment Grade Corporate (LQD)
- JP Morgan USD Emerging Markets (EMB)
- S&P National AMT-Free Municipal (MUB)
In June, 2010 BofA/Merrill Lynch offered a new online brokerage system called Merrill Edge, which will have the added appeal of lower fees. Neil Anderson for Mutual Fund Wire reports that it will target investors with less than $250,000 in assets under management and will offer trades that cost up to $8.95.
In 2010, Vanguard introduced 16 ETFs, including one based on the Standard & Poor’s 500-stock index that charges just 0.06% in annual expenses, or $6 in fees on a $10,000 investment. The Schwab U.S. Broad Market ETF, launched last November, also charges 0.06%. In June, the iShares Gold Trust cut its annual expenses from 0.4% to 0.25%.
On Friday 10/8/2010 TD Ameritrade joined the price war raging in the US exchange traded fund industry by offering clients commission-free purchase of a range of 100 ETFs, as long as they hold the securities for a month and avoid a $19.99 trading fee.
At the end you, the investor, will be the winner.
Paul Sid, CPA CFA
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