MutualFundWire.com: Savage Explains Schwab's Fundamental ETF Gambit

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Wednesday, June 19, 2013

Savage Explains Schwab's Fundamental ETF Gambit

Charles Schwab[profile] has its sights set on fundamental indexing, a growing area of the ETF market, IndexUniverse writes. Schwab has six fundamental ETFs in registration at the moment. When IndexUniverse's Cinthia Murphy asked why the company is serving ETF versions of existing mutual funds, here's what Charles Schwab's managing director and portfolio strategist Mike Savage had to say:

We see some competitors making good traction in the fundamental indexing ETF space. Beyond that, we feel fundamental indexing makes a lot of sense for our investor base. Increasingly, our advisors in the RIA community, our individual investors on our retail platform and the institutions that we do business with are actively using both mutual fund and ETFs.