A Look At The Acceleration In The No-Commission ETF Universe

Oct 08, 2010

Today, Ameritrade announced no-commission trading on 101 ETF/ETN's, the most aggressive move by a brokerage to date.    

Vanguard, Schwab & Fidelity all have various no-commission ETF programs ongoing but TD Ameritrade has now raised the stakes.   Ameritrade is the first to offer no-commission trades on select country funds such as India, China, Australia and Canada.  Country fund strategies are quite powerful and we think this is a very positive development.  The list of ETFs also includes multiple REIT ETFs, the junk bond ETF from State Street (JNK) as well as multiple commodity indexes.  

The trends are the important things to note here:  1) ETFs are allowing increasingly targeted exposure to various global market segments and 2) now you can get these targeted exposures for extremely low expense ratios and no transaction fee. 

Below are the 101 ETF/ETNs Ameritrade has made commission-free (Be advised up-front though that you must hold an ETF 30 days or else be charged a $19.99 commission  --- note that this isn't an 'extra' penalty as $19.99 simply represents $10 for the sell and $10 for delayed commission payment of the initial buy.   For comparison purporse,  Ameritrade charges a $49.99 commission for selling a commission-free mutual fund within 30 days of purchase): 




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Comments (1) -

Oct 09, 2010 16:19 #

So many commission free ETF are now making actively traded portfolios very worthwhile. I especially like the Vanguard set of commission free ETFs.  The tools on your site and others, are very helpful to those wanted to manage such portfolios. Keep up the great work!

mybestfunds.com United States

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