Discount brokerage giant E*Trade Financial Corporation on Wednesday announced a big expansion in the number of ETFs that customers can access without commissions.
In a press release, the New York-based firm said that it has significantly increased its commission-free exchange-traded fund (ETF) lineup, all of which is non-proprietary, with the addition of 46 new funds from six providers.
With these additions, E*TRADE now offers a total of 250 commission-free ETFs. New ETFs added to the company’s commission-free program include 32 Vanguard ETFs, in addition to ETFs from Direxion, iShares, Janus Henderson, NuShares, and Reality Shares.
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The devil is in the details
E*TRADE isn’t the only discount brokerage to offer zero-commission ETFs as the company is tussling with rivals to expand low-cost investment products. Big rivals, including Charles Schwab and TD Ameritrade, also announced recently the expansion of its own similar offerings, increasing the total number of ETFs that don’t have a commission attached to them.
E*TRADE customers can further diversify their portfolio without paying commissions. However, those who want to realize the benefits of ETFs without commissions should hold those funds for a certain amount of time.
Rich Messina, SVP of Investment Product at E*TRADE Financial, commented: “With this expansion, we are thrilled to be a premier destination for investors seeking commission-free access to these popular ETFs. It’s now easier than ever for E*TRADE customers to achieve comprehensive diversification across practically any asset class, and do so inexpensively. These additions can fill a tactical void for a multitude of strategies—from tracking broad indexes to seeking higher returns to defending against changing market conditions to pursuing factor-based sector exposure—while providing commission-free access to some of the most active, well-known ETFs available today.”