Invest on the Cheap With Commission-Free ETFs

Expense ratios are being slashed by top providers.

(Image credit: williv)

ETF providers are slashing expense ratios, and Charles Schwab leads the pack in the race to the bottom. The broker’s 21 exchange-traded funds are among the cheapest available. Plus, if you’re a Schwab brokerage customer, you can invest in the ETFs commission-free.

Guide to Scoring the Best Deals in 2017

Start with Schwab Broad Market ETF (SCHB, $57), whose portfolio of about 2,000 stocks covers 95% of the U.S. stock market. The fund charges 0.03% annually, making it the cheapest U.S. stock market proxy around.

For foreign exposure, try Schwab International Equity ETF (SCHF, $30), which charges only 0.06% annually and tracks more than 1,100 stocks in 24 developed countries. For a bond fund, consider Schwab U.S. Aggregate Bond ETF (SCHZ, $52). With an expense ratio of 0.04%, it’s the lowest-cost way to track the Bloomberg Barclays US Aggregate Bond index. The fund yields 2.4%.

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Ryan Ermey
Former Associate Editor, Kiplinger's Personal Finance

Ryan joined Kiplinger in the fall of 2013. He wrote and fact-checked stories that appeared in Kiplinger's Personal Finance magazine and on Kiplinger.com. He previously interned for the CBS Evening News investigative team and worked as a copy editor and features columnist at the GW Hatchet. He holds a BA in English and creative writing from George Washington University.