Funds on the non-transaction fee platform pay Schwab an average of 32 basis points and are prohibited from offering lower-cost products via other platforms.
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Funds offered by Charles Schwab’s fund supermarket with transaction fees have an average expense ratio of 0.88% compared to the average expense ratio of 1.16% for non-transaction fee funds. So reports Morningstar.
Funds on the non-transaction fee platform pay Schwab an average of 32 basis points and are prohibited from offering lower-cost products via other platforms.