Mutual fund giant Charles Schwab has moved to introduce exchange traded funds to investment clients. On Jan. 30, the investment management arm of the Charles Schwab Corp. filed with the Securities and Exchange Commission for exemptive relief to create its first ETF.
In the article, Schwab Plunge into ETFs May Open Floodgates, Investment News reporter David Hoffman concludes that the move is likely to entice Fidelity and other mutual fund leaders into offering ETFs. Former State Street executive Anthony Ryan recently joined Fidelity to head up asset management strategy and product development.
Mutual funds were crushed by ETFs in 2008. For the year, investors pulled $181 billion out of mutual funds while putting $176 billion into ETFs according to a report by research firm Strategic Insight.