I mentioned last week that the entry of Schwab into the ETF business marked a pretty important day for the industry. Today Marketwatch.com posted a story on their site about the same topic, but made a bold statement. According to Marketwatch, Schwab’s entry, along with Pimco’s announcement last year that it was getting into the business, could mark a ‘Tipping Point’ that forces all the other major mutual fund houses to follow suit.
Most of the important indexes already have good ETF alternatives. It will be interesting to see if Schwab and Pimco simply copy ETFs that are already available, or use their formidable resources to drive additional innovation in the industry. Let’s hope it is the later.
