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Charles Schwab & Co.'s vertical play to monopolize ETF market -- to be its low-cost maker, distributor and manager -- diesels ahead as ETF OneSource grows again

San Francisco giant executes macro strategy to underprice Vanguard, get paid big bucks to sell third-party funds for free, sell ETF portfolios gratis in its industry-leading robo-advisor and keep custody of $1.4T of RIA assets fast-converting to ETFs

Author By Lisa Shidler July 14, 2017 at 8:51 PM
1 Comment
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Alex Bryan: Schwab is on the cusp of making that bridge to the top space in ETFs


Stephen Winks

Stephen Winks

July 15, 2017 — 1:09 AM
Vertical integration from product to process as a low cost means to deliver value to the consumer is profound as machine learning algorithms emerge for advisor use. Blackrock, Vanguard, Schwab and other TBD vendors can completely change our conceptualization of expert authenticated financial services and how they are delivered most cost effectively. This is not a product play but answers the question how can we avoid having 40% of the client's earnings on their retirement savings being lost to brokerage fees, commissions and administrative cost. It is a process play as a means to win market share based on the integration of value added financial services conventional brokerage is reticent to support. Low cost, high value added financial services in support of fiduciary duty and professional standing result. Extraordinary! SCW

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Morningstar, Inc.
Top Executive: Joe Mansueto

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