TD Ameritrade (AMTD) today announced the launch of its Commission-Free ETF Market Center. The October 8, 2010 press release states that more than 100 commission-free ETFs, selected by Morningstar, are available to clients of Ameritrade and Capital Cities Asset Management.
“We worked with independent experts to create an objective list of ETFs focused on long-term investing. Morningstar Associates considered all ETF providers, and neither TD Ameritrade nor Morningstar Associates will receive any incentive from those firms, for inclusion on the list,” said Fred Tomczyk, president and chief executive officer of TD Ameritrade. “We’re taking a better and more client-focused approach to helping our clients build long-term portfolios.”
The products included in this program are an impressive lineup of both ETFs and ETNs from a wide range of sponsors including iShares, SPDRs, Vanguard, PowerShares, Van Eck, WisdomTree, Barclays, and Deutsche Bank. The complete list can be found at the new ETF Market Center on TD Ameritrade’s website divided into various groupings.
Ever since Schwab entered the ETF arena with commission-free ETFs, we have been predicting the arrival of more commission-free ETF Supermarkets, similar to the spread of no-transaction fee mutual fund supermarkets in the 1990s. Here is a quick summary covering the brief history of commission-free ETFs :
- Schwab Creates Watershed Event with Commission-Free ETFs (11/03/2009)
- The 26 Commission-Free ETFs at Fidelity (2/03/2010)
- Vanguard Enters ETF Free Trading War (5/04/2010)
- New ETF Supermarket at TD Ameritrade (10/08/2010)
In less than a year we have gone from no one offering commission-free ETF trading to now having four major firms offering some level of the service. Today’s launch by TD Ameritrade is the most encompassing of the four.
To trade commission-free ETFs at TD Ameritrade, you must be enrolled in the program. For clients of Capital Cities Asset Management using whose accounts are custodied at TD Ameritrade, we will take care of that enrollment for you. Investors need to be aware that any ETFs purchased through the commission-free program that are subsequently sold within 30 days, a short-term trading fee of $19.99 will be assessed. Additional information: 30-day hold period.
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