Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Has Charles Schwab Corp (SCHW) Become the Perfect Stock?

But the big news for Schwab lately has been its major push into the exchange-traded fund market. After having been the first to offer commission-free ETFs in 2009, Schwab recently expanded its offerings with its ETF OneSource marketplace, with more than 100 different ETFs from multiple ETF providers, including No. 2 industry player State Street Corporation (NYSE:STT). The move not only gives State Street’s SPDR line of ETFs a dedicated distribution channel but also helps Schwab go up against rival broker TD Ameritrade Holding Corp. (NYSE:AMTD), which was the first to offer a 100+ fund menu of commission-free ETFs on its platform.

Schwab has also sought to expand its financial product offerings, most recently by offering a variable annuity geared at generating retirement income. Rival financial companies Hartford Financial Services Group Inc (NYSE:HIG) and Genworth Financial Inc (NYSE:GNW) have reined in their annuity offerings, with Hartford suspending all new sales and seeking to buy out some of its variable annuity holders, and Genworth having stopped selling retail and group variable annuities a couple of years ago. Both companies suffered from adverse conditions in the annuity market during the financial crisis, but Schwab sees promise in the products, which will be backed by insurer Pacific Life.

For Schwab to improve, it needs to see further gains in customer activity and do a better job of converting that activity to revenue and income. With a favorable stock market, Schwab needs to take advantage before a market reversal sours investors once again.

The article Has Schwab Become the Perfect Stock? originally appeared on and is written by Dan Caplinger.

Fool contributor Dan Caplinger owns warrants on Hartford Financial. The Motley Fool recommends TD Ameritrade.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!