The highly anticipated debut of Schwab’s all-ETF platform has been delayed due to what company spokespeople are calling regulatory issues. The firm’s all-index platform, which launched in 2012, has won more than 80 clients. One of the issues with the ETF platform is the need for fractional shares to complete intraday trading.
Schwab is making a big bet on their all-passive platform, claiming that fees should go to advice, not actively managed funds. While ETFs have been extremely popular with high net worth investors, gathering $1.5 trillion in assets, they have yet to make a big impact on DC plans.
Meanwhile, more assets are moving to index funds in retirement plans. The debate over whether ETFs belong in DC plans is different than the debate over active versus passive investing — Schwab is taking a strong stance on both arguments.
