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Activision, United rally on S&P 500 inclusion
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Wall Street’s missing a closed-end bargain

The happiest — and most miserable — countries on earth
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What should China do to fix its economy?
What should China do to fix its economy?
Analysts dismiss fears of a China hard landing
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Apple closes in on Fitbit in wearables

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These are the best jobs for millennials
These are the best jobs for millennials


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How the media just can’t spot economic crisis

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Markets »

171.98MDow Volume:
Avg Vol: 111.57M
Unchanged
150
Decliners
1105
Advancers
5358
Price Chg %Chg 1 Day
Range: 1 Day
  • 1 Day
  • 5 Days
  • 1 Month
  • 3 Months
  • 6 Months
  • 1 Year
  • 2 Years
Dow
/quotes/zigman/627449/realtime 16,655 +369 2.27%
Nasdaq
/quotes/zigman/12633936/realtime 4,813 +115 2.45%
S&P 500
/quotes/zigman/3870025/realtime 1,988 +47 2.43%
GlobalDow
/quotes/zigman/629063/realtime 2,374 +13 0.55%
Gold
/quotes/zigman/662444/delayed 1,129 +6 0.54%
Oil
/quotes/zigman/2331095/delayed 42.98 +0.42 0.99%
FTSE 100
/quotes/zigman/3173262/delayed 6,192 +213 3.56%
DAX
/quotes/zigman/2380246/delayed 10,316 +318 3.18%
CAC 40
/quotes/zigman/3173214/delayed 4,658 +157 3.49%
FTSE MIB
/quotes/zigman/1482176/delayed 22,201 +727 3.39%
IBEX 35
/quotes/zigman/2759620/delayed 10,290 +306 3.06%
Stoxx 600
/quotes/zigman/2380150/delayed 362 +12 3.46%
Asia Dow
/quotes/zigman/6959860/realtime 2,809 +56 2.05%
Nikkei 225
/quotes/zigman/5986735/delayed 19,026 +451 2.43%
Hang Seng
/quotes/zigman/2622475/delayed 22,112 +273 1.25%
Shanghai
/quotes/zigman/1859015/delayed 3,127 +43 1.40%
Sensex
/quotes/zigman/1652085/delayed 26,231 +517 2.01%
Singapore
/quotes/zigman/1709939/delayed 2,993 +47 1.61%
Euro
/quotes/zigman/16008136/realtime/sampled 1.13 +0.00 0.04%
Yen
/quotes/zigman/16008150/realtime/sampled 121.05 +0.02 0.02%
Pound
/quotes/zigman/16008140/realtime/sampled 1.54 +0.00 0.15%
Australia$
/quotes/zigman/16008115/realtime/sampled 0.72 +0.00 0.38%
DXY Index
/quotes/zigman/1652083/delayed 95.72 -0.04 0.04%
WSJ $ Idx
/quotes/zigman/41508961/realtime 88.20 -0.07 0.07%
U.S. 10yr
/quotes/zigman/15866666/realtime 2.18 -0.01 0.32%
German 10y
/quotes/zigman/15866409/realtime 0.75 +0.04 5.49%
Italy 10yr
/quotes/zigman/15866497/realtime 1.93 -0.05 2.73%
Spain 10yr
/quotes/zigman/15866444/realtime 2.06 -0.03 1.54%
U.K. 10yr
/quotes/zigman/15866328/realtime 1.87 +0.02 1.11%
Japan 10yr
/quotes/zigman/15866525/realtime 0.39 0.00 0.92%
Crude Oil
/quotes/zigman/2331095/delayed 43 +0 0.99%
Gold
/quotes/zigman/662444/delayed 1,129 +6 0.54%
Corn
/quotes/zigman/7599553/delayed 378 +3 0.67%
DJIA F
/quotes/zigman/38649152/delayed 16,601 -49 0.29%
S&P F
/quotes/zigman/30356461/delayed 1,983 -6 0.32%
Silver
/quotes/zigman/3134148/delayed 14 +0 0.02%

Quotes

Symbol Price Change % Change
FB /quotes/zigman/9962609/composite 89.73 2.54 2.91%
AAPL /quotes/zigman/68270/composite 112.92 3.23 2.94%
GOOG /quotes/zigman/30194416/composite 637.61 8.99 1.43%
BAC /quotes/zigman/190927/composite 16.44 0.38 2.37%
C /quotes/zigman/5065548/composite 53.44 1.16 2.22%
F /quotes/zigman/264304/composite 13.56 0.35 2.65%
T /quotes/zigman/398198/composite 33.44 0.75 2.29%
BP /quotes/zigman/247026/composite 33.03 1.93 6.21%
GE /quotes/zigman/227468/composite 25.01 1.00 4.16%
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Rates »

5 yr CD
1.5%
2 yr CD
0.8%
1 yr CD
0.6%
MMA $10K+
0.3%
MMA $50K+
0.4%

National averages from Bankrate.com

You Don’t Need Another Credit Card, You Need A Better One.
Avg. APR Last Week 6 Months
Low Interest 11.62% 11.62% 11.53%
Business 12.85% 12.85% 12.85%
Student 13.14% 13.14% 13.14%
Balance Transfer 14.12% 14.12% 14.00%
Airline 15.10% 15.10% 15.15%
Reward 15.14% 15.14% 14.99%
Cash Back 15.27% 15.27% 15.26%
Instant Approval 18.00% 18.00% 17.93%
Bad Credit 22.73% 22.73% 22.48%
Source:CreditCards.com

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What to Make of Schwab’s ETF Price Cut

Charles Schwab won headlines Friday with its promise to cut annual investment fees on its line of market-tracking exchange-traded funds. But investors hoping to score a deal still need to do the math.

The online brokerage, which began offering its own ETFs in late 2009, has always used price as a selling point. The company now plans to slash fees to levels not previously seen. For instance, the annual levy on the $890 million Schwab U.S. Large-Cap ETF (SCHX), will be cut to just $4 a year per $10,000 invested, from $8. The new rate is less than half the $10 a year charged by the widely followed $118 billion SPDR (SPY), which tracks the same slice of the stock market. “We want to offer investors the lowest-cost solution,” says Schwab’s Managing Director of ETFs Eric Pollackov. “It’s the one thing we can contol.”

A no-brainer, right? Perhaps for some. But for most investors the choice is still pretty complicated. One big reason is that, while previous rounds of price cuts have helped companies like Vanguard Group upend the ETF world, investment fees on most funds are now already so low that other factors like trading costs can often have a bigger impact on investors’ bottom lines.

For most investors, the first thing to decide isn’t which ETF to buy, but whether to buy an ETF at all or a conventional index mutual fund with a similar investment strategy. For those that sock away a little each month or quarter, conventional funds are usually a better deal regardless of an ETF’s fees, because investors can buy them without paying brokerage commissions.

To be sure, currently Schwab lets investors trade Schwab ETFs commission-free in online Schwab brokerage accounts. But investors at Ameritrade ($9.99 a trade) or Merrill Edge ($6.95) could easily erase all savings on investment fees with just a few buy orders.

Commissions aren’t the only ancillary cost. There is also the bid-ask spread, the small price mark-ups investors pay to market makers when they trade. According to Morningstar, the spread on Schwab’s Large-Cap ETF, amounts to $3 per $10,000 invested versus $1 for the SPDR, cutting into the Schwab fund’s advantage on fees. Such discrepancies can be even more dramatic on funds that track harder-to-trade securities like bonds or emerging market stocks. They can also be wider at certain times of day like market open or close.

Finally, there is the question of how well any given fund tracks the corner of the stock market it targets. For Schwab U.S. Large-Cap ETF fund holders this has likely loomed far larger during the past year than fees. While the better-known SPDR tracks the Standard & Poor’s 500, Schwab’s version follows the Dow Jones US Large-Cap Index, a benchmark that includes about 750 names, giving it more exposure to middle-sized companies. Recently that discrepancy has hurt. The S&P 500 returned 27.97% over the past year versus 27.53% for the more inclusive Dow Jones version. The difference for investors — $44 per $10,000 invested – may look small on paper, but it swamps the difference in costs.

Comments

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Comments (4 of 4)

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    • -1′

    • Interesting…especially the info re being aware of tracking…i.e…S&P 500 vs Dow Jones.

About Real-Time Advice

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MarketWatch - Stock Market Quotes, Business News, Financial News
Bulletin
Investor Alert

Tokyo Markets Close in:

need to know
Activision, United rally on S&P 500 inclusion
Amgen gets FDA OK for cholesterol treatment
Icahn discloses stake in Freeport McMoRan
Autodesk beats earnings expectations
GameStop tops expectations; shares rise
Bank of New York Mellon tech woes hit prices
Wall Street’s missing a closed-end bargain

The happiest — and most miserable — countries on earth
This is the happiest country on earth


What should China do to fix its economy?
What should China do to fix its economy?
Analysts dismiss fears of a China hard landing
‘Loch Ness monster’ and a mysterious rally
China fears trigger emerging market outflows

Apple closes in on Fitbit as world's biggest wearables company
Apple closes in on Fitbit in wearables

Apple to host Sept. 9 product event

How momentum investing could go out of style
Momentum investing could be going out of style

These are the best jobs for millennials
These are the best jobs for millennials


Wal-Mart explains decision to stop selling some guns

One billion people logged onto Facebook Monday in new company milestone
1 billion people used Facebook in one day


Poll shows Biden running stronger than Clinton
Republican wants more than the sequester

Donald Trump says he’s OK with raising taxes on himself
Trump: I’m OK with raising taxes on myself

Bezos is clear about what Amazon’s culture is

10 fall beers with absolutely no pumpkin in them
10 fall beers with absolutely no pumpkin in them

Sorry, Uber, but this is the end of the IPO party

Star-studded content up Netflix’s sleeve
'Mr. Robot' season finale postponed

Jim Rogers: Don’t rule out a commodity bull run
Commodities are ripe for a rebound

How the media just can’t spot economic crisis

6 ‘services’ that help hackers get rich

4 things you didn’t know could be hacked
How vulnerable are U.S. markets to hackers?


How to throw a  birthday party for under $100
Only half of Americans with kids have wills

Millennials are clueless about cellphone etiquette
Millennials realize growing up is hard to do

/conga/frontpage.html 353513

Markets »

171.98MDow Volume:
Avg Vol: 111.57M
Unchanged
150
Decliners
1105
Advancers
5358
Price Chg %Chg 1 Day
Range: 1 Day
  • 1 Day
  • 5 Days
  • 1 Month
  • 3 Months
  • 6 Months
  • 1 Year
  • 2 Years
Dow
/quotes/zigman/627449/realtime 16,655 +369 2.27%
Nasdaq
/quotes/zigman/12633936/realtime 4,813 +115 2.45%
S&P 500
/quotes/zigman/3870025/realtime 1,988 +47 2.43%
GlobalDow
/quotes/zigman/629063/realtime 2,374 +13 0.55%
Gold
/quotes/zigman/662444/delayed 1,129 +6 0.54%
Oil
/quotes/zigman/2331095/delayed 42.99 +0.43 1.01%
FTSE 100
/quotes/zigman/3173262/delayed 6,192 +213 3.56%
DAX
/quotes/zigman/2380246/delayed 10,316 +318 3.18%
CAC 40
/quotes/zigman/3173214/delayed 4,658 +157 3.49%
FTSE MIB
/quotes/zigman/1482176/delayed 22,201 +727 3.39%
IBEX 35
/quotes/zigman/2759620/delayed 10,290 +306 3.06%
Stoxx 600
/quotes/zigman/2380150/delayed 362 +12 3.46%
Asia Dow
/quotes/zigman/6959860/realtime 2,809 +56 2.03%
Nikkei 225
/quotes/zigman/5986735/delayed 19,026 +451 2.43%
Hang Seng
/quotes/zigman/2622475/delayed 22,112 +274 1.25%
Shanghai
/quotes/zigman/1859015/delayed 3,127 +43 1.40%
Sensex
/quotes/zigman/1652085/delayed 26,231 +517 2.01%
Singapore
/quotes/zigman/1709939/delayed 2,993 +47 1.60%
Euro
/quotes/zigman/16008136/realtime/sampled 1.12 +0.00 0.04%
Yen
/quotes/zigman/16008150/realtime/sampled 121.05 +0.02 0.02%
Pound
/quotes/zigman/16008140/realtime/sampled 1.54 +0.00 0.14%
Australia$
/quotes/zigman/16008115/realtime/sampled 0.72 +0.00 0.39%
DXY Index
/quotes/zigman/1652083/delayed 95.73 -0.04 0.04%
WSJ $ Idx
/quotes/zigman/41508961/realtime 88.20 -0.07 0.07%
U.S. 10yr
/quotes/zigman/15866666/realtime 2.18 -0.01 0.32%
German 10y
/quotes/zigman/15866409/realtime 0.75 +0.04 5.49%
Italy 10yr
/quotes/zigman/15866497/realtime 1.93 -0.05 2.73%
Spain 10yr
/quotes/zigman/15866444/realtime 2.06 -0.03 1.54%
U.K. 10yr
/quotes/zigman/15866328/realtime 1.87 +0.02 1.11%
Japan 10yr
/quotes/zigman/15866525/realtime 0.39 0.00 0.92%
Crude Oil
/quotes/zigman/2331095/delayed 43 +0 1.01%
Gold
/quotes/zigman/662444/delayed 1,129 +6 0.54%
Corn
/quotes/zigman/7599553/delayed 378 +3 0.67%
DJIA F
/quotes/zigman/38649152/delayed 16,601 -49 0.29%
S&P F
/quotes/zigman/30356461/delayed 1,983 -6 0.30%
Silver
/quotes/zigman/3134148/delayed 14 +0 0.02%

Quotes

Symbol Price Change % Change
FB /quotes/zigman/9962609/composite 89.73 2.54 2.91%
AAPL /quotes/zigman/68270/composite 112.92 3.23 2.94%
GOOG /quotes/zigman/30194416/composite 637.61 8.99 1.43%
BAC /quotes/zigman/190927/composite 16.44 0.38 2.37%
C /quotes/zigman/5065548/composite 53.44 1.16 2.22%
F /quotes/zigman/264304/composite 13.56 0.35 2.65%
T /quotes/zigman/398198/composite 33.44 0.75 2.29%
BP /quotes/zigman/247026/composite 33.03 1.93 6.21%
GE /quotes/zigman/227468/composite 25.01 1.00 4.16%
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Rates »

5 yr CD
1.5%
2 yr CD
0.8%
1 yr CD
0.6%
MMA $10K+
0.3%
MMA $50K+
0.4%

National averages from Bankrate.com

You Don’t Need Another Credit Card, You Need A Better One.
Avg. APR Last Week 6 Months
Low Interest 11.62% 11.62% 11.53%
Business 12.85% 12.85% 12.85%
Student 13.14% 13.14% 13.14%
Balance Transfer 14.12% 14.12% 14.00%
Airline 15.10% 15.10% 15.15%
Reward 15.14% 15.14% 14.99%
Cash Back 15.27% 15.27% 15.26%
Instant Approval 18.00% 18.00% 17.93%
Bad Credit 22.73% 22.73% 22.48%
Source:CreditCards.com

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Trending Tickers
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  • /quotes/zigman/19815/composite AMGN+1.13%
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