Charles Schwab is preparing to launch its first exchange-traded fund (ETF) in four years.
The mutual fund giant, famous for lowering expenses to compete with low-costs ETF solutions like iShares and Vanguard, will launch the Schwab 1000 Index ETF, according to a Securities and Exchange Commission filing.
The fund invests in a collection of US large and mid-cap stocks that make up the proprietary Schwab 1000 index.
It is managed by Christopher Bliss, Ferian Juwono, and Sabya Sinha and does not have a management fee disclosed yet.
The fund is modelled on the existing $7.3 billion Schwab 1000 Index mutual fund which has an annual management fee of 0.05%.
In February, the firm cut charges on some of its index funds, bringing fees in line with some of its ETF equivalents.
The fees of the Schwab S&P 500 Index, Small-Cap Index and US Aggregate Bond Index funds were lowered to 0.03%, 0.06% and 0.04%, respectively.
A Schwab spokesperson confirmed the contents of the filing but declined to comment further.