Schwab Announces Lower Cost ETF for 1,000 Largest US Stocks

The new ETF will be the 22^nd fund in Schwab's ETF lineup. Schwab introduced its first ETF in 2009 and currently has $88 billion in ETF assets. It is the fifth largest ETF provider after BlackRock (iShares), Vanguard, State Street (SPDR) and Invesco (PowerShares).

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"We launched the Schwab 1000 Index and mutual fund in 1991 to help investors participate in the innovation and long-term growth of the largest 1,0000 stocks in the U.S. in a simple and cost-effective way," said Schwab founder and chairman Charles Schwab in a statement. "I'm thrilled that investors can now benefit from the potential growth of these firms with the ease and efficiency of a low-cost ETF."

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Marie Chandoha, president and CEO of Charles Schwab Investment Management, in the same statement, said the new ETF provides "one more affordable way" for Schwab's "wide range of investors with different needs" to access the U.S. stock market.