Schwab makes play for ETF-distribution domination but not without risks
Low margins, a small list of ETFs, plenty of competition and possible trade-spread issues make this OneSource bid no slam-dunk
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March 25, 2023 at 1:32 AM
Charles 'Chuck Schwab' called James Gorman to protest a two-broker poach, kicking off a hydra-headed legal battle, costing Morgan Stanley millions, so far
The Schwab founder and chairman invoked Charles Schwab Corp.'s zero-tolerance policy against Wall Street -- or RIA -- poaching of talent and AUM from Schwab branches.
March 9, 2023 at 1:23 AM
Fidelity will hire 4,000 staff in first half -- a staggering number but a tapering off from 'unprecedented' rate in 2021-2022 that catapulted it to 68,000 employees
The $10.3 trillion giant explains its hiring -- in a layoff environment -- as an RIA-like goal, namely having the human bandwidth to develop 'lifetime' relationships with its 40 million investors
February 17, 2023 at 2:49 AM
Biz Briefs: Schwab puts checks for $52 million in mail to robo-RIA customers allegedly misled about cash allocations • BlackRock blacklisted (again) • iShares beats NZAM-exiter Vanguard • Fidelity makes first acquisition in eight years • CFP board realizes Moms don't like CFPs
BlackRock gets Kentucky coal in stocking, and Vanguard keeps skating; iShares inches above -- by 2.8% -- Vanguard's annual net new ETF asset haul; Fidelity takes "natural next step" for stock plan business; new CFP chair outlines plans and the DOJ is set to become a major Robinhood shareholder..
January 13, 2023 at 3:01 AM
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Stephen Winks
Weisbruch has a point.
Retail trading desk conflicts have been the primary inhibitor to the brokerage industry developing the neceasary enabling processes, technology, work flow management and more sophisticated approaches to portfolio construction to support expert fiduciary standing in the consumer’s best interest.
Schwab will pick up ETF market share even if the spreads are not in the best interest of the consumer because noone pays attention to the fiduciary duty to minimize cost on behalf of the client as a prudent expert.
It takes a while for the marketplace to awaken to how to win the trust and confidence of the investing public by literally acting inthe client’s best interest. This is why culture (fiduciary standing) always trumps strategy. Schwab’s strategy is a move in the right direction.
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Roger Wohlner
I applaud Schwab and others who are driving the price of owning and trading ETFs down. As an advisor who mostly uses ETFs as longer-term holdings this won’t impact my behavior in terms of building client portfolios a great deal. I will say that in smaller accounts held at Schwab I have begun to use some of the Schwab ETFs and would likely take advantage of the additional ETFs included in this program if they fit what I was trying to do for the client.
