Schwab undercuts Vanguard with launch of muni ETF

Charles Schwab Corp.’s asset management arm is launching a new municipal-bond exchangetraded fund with an ultra-low fee that will compete with giants in the space. The fund, the Schwab Municipal Bond ETF, will be the cheapest in the municipal-bond market with an expense ratio of just 0.03%, according to Schwab Asset Management. That’s lower than even The Vanguard Group’s $17 billion muni ETF, which charges 0.05%. Muni ETFs, which offer a cheap way for investors to access the market, have been able to lure investor cash this year despite a steep selloff. The funds have seen more than $13 billion in inflows year to date, according to Bloomberg Intelligence data.