207.72 billion USD
0.03% - 0.39%
If you plan to invest in ETFs, you must have heard about Schwab and considered it an option. But what exactly is Schwab?
In the world of Exchange-traded funds or ETFs, the ETF issuer or provider plays an important role. Since the market begins and ends with the issuer, understanding it is crucial for you as an investor.
Let's get into it!
Schwab is an American multinational financial services company. Founded in San Francisco, California, it is also known as The Charles Schwab Corporation.
The company's headquarters is in Westlake, Texas. It is the 13th largest banking institution in the United States, with over $3.3 trillion in client assets as of 2019. In short, it's the third-largest asset manager in the world.
The firm is famous for its many services. Among these are the electronic trading platforms, investor education, and discount brokerage services.
What makes it better is the reduced and free trading commission charges. Thus, it offers an excellent opportunity for investors to enjoy less to no commission charges.
The platform of Schwab offers more than 2,000 commission-free ETFs. Thus, it makes an excellent option for people who want to consider investing in an ETF.
Schwab ranks among the largest financial services companies with $3.56 trillion under management. Further, it has 2,100 employed advisors.
Schwab is not a hedge fund. While ETFs can't hold hedge funds, they can act like one. In general, ETFs can deliver many popular hedge fund strategies. Among these are long/short, market-neutral, currency-carry, merger arbitrage, etc.
In general, a hedge fund is an investment company that invests its clients' money in alternative investments. It tries to either beat the market or hedge against unforeseen market changes.
Schwab offers great promise with its significant experience and performance. Thus, it can be wise to take a more in-depth look into the company and conduct further research.
Isn't Charles Schwab right for you? Check its best alternatives.