TD Ameritrade Holding Corp. (AMTD), Charles Schwab Corp (SCHW): Will This Company’s Recent Moves Pay Off?

The big potential for Schwab lies in going after 401(k) accounts. Currently, mutual funds dominate 401(k) plan investment options, but ETFs are making inroads into the multitrillion-dollar industry. Despite existing competition from TD Ameritrade Holding Corp. (NYSE:AMTD) and Capital One Financial Corp. (NYSE:COF)‘s ShareBuilder — and with Fidelity’s recent expansion of its ETF partnership with BlackRock, Inc. (NYSE:BLK)‘s iShares unit signaling another potential entrant to the space — Charles Schwab Corp (NYSE:SCHW)’s plans to launch an all-ETF 401(k) plan next year could tap a larger part of a lucrative market.

In Schwab’s quarterly report, look for more information on the impact that its commission-free ETFs are having on its overall business. With a big investment in ETFs already, Charles Schwab Corp (NYSE:SCHW) needs to see a payoff from the strategy — especially during such a big bull market.

The article Will Schwab’s Recent Moves Pay Off? originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends BlackRock and TD AMERITRADE.

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