Charles Schwab jumped into the exchange-traded fund market about five years ago. How do their offerings match up against some of the more established ETF shops? Should you consider buying Schwab ETFs?
Before analyzing and comparing ETFs, keep in mind that most of them track an index. What makes Schwab products different, however, is that many of them either track different indices than those tracked by similar bigger-name ETFs, or they have significantly different compositions. What investors want to know is: Does that matter? Has Schwab found a neat trick to boost returns, or is it all mostly the same (or worse)?
But are Schwab ETFs more than just generic offerings? Do they offer anything of value that might distinguish them from other funds? With this in mind, let’s take a look at 5 Schwab ETFs and compare them to the expenses and portfolios of ETFs in each respective category.