The price war between major U.S. brokerages heated up Tuesday after Charles Schwab and Fidelity both announced they would expand commission-free trading to hundreds more exchange-traded funds.
Both companies said they would make around 500 ETFs available for trading at no cost, each doubling the amount of funds in their offerings. The funds being added include hundreds of iShares ETFs, products developed by BlackRock, the world's biggest asset manager.
Retail investors have gobbled up ETFs in recent years, attracted to their lower fees compared with traditional mutual funds. As of the end of December, ETFs held some $3.3 trillion of assets, according to the Investment Company Institute. The thirst for cheap products has led to a war for investor dollars among the major online brokers.