Schwab turns the investment industry topsy-turvy with the introduction of fractional investing in ETFs.
What is fractional investing?
For the first time, clients are allowed to purchase fractions of stocks! Investors will now be able to purchase half shares of costly ETFs – which will allow for greater diversification.
This could bring about considerable changes for 401(k) retirement accounts and direct indexing. Fractional shares have been available for mutual funds but this is an exciting change in the ETF industry.
Learn more about it in this recent piece from NBC.