Fees Hit Rock Bottom: Schwab's ETF Price War Spills into Crypto

Schwab Asset Management has reduced fees on four equity index funds to record low levels. The US mid-cap and small-cap ETFs now charge just 0.03%, while international small-cap and emerging markets funds have a fee of 0.06%. This move is part of the ongoing price war in the core indexing space, with Vanguard and BlackRock also cutting fees.

The reductions took effect on June 11 and apply to SCHM, SCHA, SCHC, and SCHE. As a result, 16 out of Schwab's 24 market-cap weighted index ETFs now charge three basis points or less. The firm manages roughly $1.6 trillion in discretionary assets, making it the fifth-largest US ETF provider.

Eric Balchunas, Senior ETF Analyst at Bloomberg Intelligence, noted that the cuts tie with, rather than beat, the cheapest rivals. This is a sign of just how cheap the entire market has become, and why some issuers are turning to alternative products like cryptocurrency wrappers.