OMAHA, Neb.--(BUSINESS WIRE)--TD Ameritrade1 today announced a major expansion and upgrade of its commission-free exchange-traded funds (ETF) trading program, tripling the number of ETFs to 296 from 100, effective tomorrow. The firm will offer the most commission-free ETFs in the industry as well as the largest selection of non-proprietary, commission-free ETFs.
Through the upgraded TD Ameritrade commission-free ETF program, registered investment advisor (RIA) and individual investor clients will have access to non-proprietary, low-cost ETFs from eight leading providers:
TD Ameritrade will provide investors and advisors greater choice and flexibility by allowing all of its clients to buy and sell commission-free ETFs that cover 77 Morningstar categories; provide increased sector and commodity coverage; and include extremely low-cost ETFs in 15 core investment strategies from State Street Global Advisors’ SPDR Business.
This expanded, commission-free ETF lineup, most of which are new additions, are available starting tomorrow. For a complete ETF list, please visit www.amtd.com/commission-free-ETF-program.
“Clients asked us for greater choice and a wider variety of high-quality, commission-free ETFs. We’re delivering in a big way: we’ve assembled the largest list of commission-free ETFs in the business, while still retaining our open-architecture approach, with no proprietary ETFs,” said Jim Dario, managing director of product management for TD Ameritrade Institutional, which serves more than 5,000 independent registered investment advisors (RIAs). “The new platform will feature some of the biggest names in the ETF industry, with ETFs selected to cover a range of investment strategies and enable investors and advisors to create tailored, diversified portfolios.”
ETFs have proven increasingly popular as more investors – from self-directed individuals to independent RIAs – seek out passive, low-cost, index-based investments to build diversified portfolios.
TD Ameritrade led the industry with the first ETF Market Center in 2004, and in 2010 followed up with the launch of commission-free ETF trading. Over the past seven years, strong client demand and market appreciation has driven rapid growth in the firm’s commission-free ETF assets under management, resulting in a 31 percent compounded annual growth rate with assets growing nearly seven times.2
“For more than a decade, we’ve worked to make it easier for clients to execute their investment strategies using non-proprietary ETFs. Now we’re tripling our ETF offerings to deliver one of the most comprehensive selections of commission-free ETFs in the industry,” said Marco De Freitas, head of retail strategy, product and digital for TD Ameritrade. “This marks the most significant enhancement of our program since 2010, when we helped level the playing field for the everyday investor with commission-free ETF trading.”
Industry-wide, the U.S. ETF market surged to $2.52 trillion across 1,716 ETFs at the end of 2016, up more than threefold from $608 billion and 620 ETFs since 2007, according to the Investment Company Institute.3 ETFs have continued to attract assets, growing by 21 percent this year to a record $3.09 trillion as of Aug. 31, according to research firm ETFGI.4
To Learn More
To learn more about TD Ameritrade’s enhanced commission-free ETF program, please visit www.amtd.com/commission-free-ETF-program. Clients also enjoy access to an ETF Knowledge Center, advanced trading platforms, powerful tools, educational resources and the help of TD Ameritrade’s trading specialists.
About TD Ameritrade Holding Corporation
Millions of investors and independent registered investment advisors (RIAs) have turned to TD Ameritrade’s (Nasdaq: AMTD) technology, people and education to help make investing and trading easier to understand and do. Online or over the phone. In a branch or with an independent RIA. First-timer or sophisticated trader. Our clients want to take control, and we help them decide how - bringing Wall Street to Main Street for more than 40 years. TD Ameritrade has time and again been recognized as a leader in investment services. Please visit TD Ameritrade’s newsroom or www.amtd.com for more information, or read our stories at Fresh Accounts.
About TD Ameritrade Institutional
TD Ameritrade Institutional is a leading provider of comprehensive brokerage and custody services to more than 5,000 fee-based, independent registered investment advisors and their clients. Our advanced technology platform, coupled with personal support from our dedicated service teams, allows investment advisors to run their practices more efficiently and effectively while optimizing time with clients. TD Ameritrade Institutional is a division of TD Ameritrade, Inc., a brokerage subsidiary of TD Ameritrade Holding Corporation.
Source: TD Ameritrade Holding Corporation
Carefully consider the investment objectives, risks, charges and expenses before investing. A prospectus, obtained by calling 800-669-3900, contains this and other important information about an investment company. Read carefully before investing.
ETFs are subject to risk similar to those of their underlying securities, including, but not limited to, market, investment, sector, or industry risks, and those regarding short-selling and margin account maintenance. Some ETFs may involve international risk, currency risk, commodity risk, leverage risk, credit risk, and interest rate risk. Performance may be affected by risks associated with non-diversification, including investments in specific countries or sectors. Additional risks may also include, but are not limited to, investments in foreign securities, especially emerging markets, real estate investment trusts (REITs), fixed income, small-capitalization securities, and commodities. Each individual investor should consider these risks carefully before investing in a particular security or strategy. Investment returns will fluctuate and are subject to market volatility, so that an investor’s shares, when redeemed or sold, may be worth more or less than their original cost. Unlike mutual funds, shares of ETFs are not individually redeemable directly with the ETF. Shares are bought and sold at market price, which may be higher or lower than the net asset value (NAV).
Information provided by TD Ameritrade, including without limitation that related to the ETF Market Center and commission-free ETFs, is for general educational and informational purposes only and should not be considered a recommendation or investment advice.
ETFs purchased commission-free that are available on the TD Ameritrade ETF Market Center are available generally without commissions when placed online in a TD Ameritrade account. Other fees may apply for trade orders placed through a broker or by automated phone.
TD Ameritrade receives remuneration from certain ETFs (exchange-traded funds) that participate in the commission-free ETF program for shareholder, administrative and/or other services.
No Margin for 30 Days. Certain ETFs purchased commission free that are available on the TD Ameritrade ETF Market Center will not be immediately marginable at TD Ameritrade through the first 30 days from settlement. For the purposes of calculation the day of settlement is considered Day 1.
Short-Term Trading Fee (Holding Period for 30 Days). ETFs available commission-free that participate in the ETF Market Center may be subject to a holding period that commences with any purchase and extends through the following THIRTY (30) calendar days. An account owner must hold all shares of an ETF position purchased for a minimum of THIRTY (30) calendar days without selling to avoid a short–term trading fee where applicable. There is no limit to the number of purchases that can be effected in the holding period. Any order to sell within THIRTY (30) calendar days of last purchase (LIFO – Last In, First Out) will cause an account owner's account to be assessed a short–term trading fee of $13.90, where applicable. For the purposes of calculation, the day of purchase is considered Day 0. Day 1 begins the day after the date of purchase. The short–term trading fee may be applicable to each purchase of each ETF where such ETF is sold during the holding period. The short–term trading fee may be more than applicable standard commissions on purchases and sells of ETFs that are not commission-free.
Neither Morningstar Investment Management nor Morningstar, Inc. is affiliated with TD Ameritrade and its affiliates. Morningstar, the Morningstar logo, Morningstar.com, and Morningstar Tools are either trademarks or service marks of Morningstar, Inc.
1 TD Ameritrade, Inc., member FINRA / SIPC, is a brokerage
subsidiary of TD Ameritrade Holding Corporation (Nasdaq: AMTD)
2 TD Ameritrade ETF assets under management December 2010 through September 2017
3 Investment Company Institute, The 2017 Investment Company Fact Book, http://www.icifactbook.org/
4 ETFGI, “ETFGI reports assets invested in ETFs and ETPs listed in the United States have increased 21.2% in 2017”, http://www.etfgi.com/news/detail/newsid/2380