Charles Schwab Takes Next Step To ETF Launches

by on September 24, 2009

Charles Schwab, one of the world’s largest brokerage and asset management firms, has hired Dustin Lewellyn, the latest indication the firm is gearing up to make a splash in the ETF industry. Lewellyn was formerly the ETF head at Northern Trust, which abandoned its ETF business earlier this year after only a year of operations. Lewellyn’s role at Schwab is yet to be confirmed, but it seems likely he will be a critical component of the team that tries to propel Schwab into the ETF industry.

Schwab first filed to enter the ETF space in January of this year, proposing an ETF that would track the Dow Jones U.S. Total Stock Market Index. In July, Schwab detailed plans for nine exchange-traded funds, including three international funds and six domestic products tracking the following indexes:

  • FTSE Developed ex-U.S. Index
  • FTSE Developed Small Cap ex-U.S. Liquid Index
  • FTSE All-Emerging Index
  • Dow Jones U.S. Broad Stock Market
  • Dow Jones U.S. Large Cap Total Stock Market
  • Dow Jones U.S. Large Cap Growth Total Stock Market
  • Dow Jones U.S. Large Cap Value Total Stock Market
  • Dow Jones U.S. Mid Cap Total Stock Market
  • Dow Jones U.S. Small Cap Total Stock Market

Schwab joins a long line of financial firms already dominant in the mutual fund space to cross over into the ETF arena. Vanguard has been very successful in developing a complete line of ETFs, while Invesco and now BlackRock have made strategic acquisitions to become major ETF players. To stay up to date on all the new entrants to the ETF industry, as well as new products and actionable investment ideas, sign up for our free ETF newsletter.

Disclosure: No positions at time of writing.