ETF providers are slashing expense ratios, and Charles Schwab leads the pack in the race to the bottom. The broker’s 21 exchange-traded funds are among the cheapest available. Plus, if you’re a Schwab brokerage customer, you can invest in the ETFs commission-free.
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Start with Schwab Broad Market ETF (SCHB, $57), whose portfolio of about 2,000 stocks covers 95% of the U.S. stock market. The fund charges 0.03% annually, making it the cheapest U.S. stock market proxy around.
For foreign exposure, try Schwab International Equity ETF (SCHF, $30), which charges only 0.06% annually and tracks more than 1,100 stocks in 24 developed countries. For a bond fund, consider Schwab U.S. Aggregate Bond ETF (SCHZ, $52). With an expense ratio of 0.04%, it’s the lowest-cost way to track the Bloomberg Barclays US Aggregate Bond index. The fund yields 2.4%.
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