Charles Schwab to Sell ETF's That Follow Robert Arnott's Non-Traditional Indexes

Charles Schwab

, the largest U.S. independent brokerage, said it would offer customers six exchange-traded funds that track non-traditional indexes pioneered by Robert Arnott. The ETFs will use index methodology created by Arnott, founder of Research Affiliates LLC, San Francisco-based Schwab said today in a statement. Known as fundamental indexes, the benchmarks weight stocks based on factors such as cash flow and dividends, rather than pure market capitalization. The six ETFs, scheduled debut Aug. 15, will track U.S. stocks, international and emerging-market equities, according to Schwab. Unlike mutual funds, ETFs are traded throughout the day like stocks. Schwab's investment management subsidiary, which currently offers 15 ETFs, had more than $205 billion in assets under management as of June 30. Its assets include $4.5 billion in mutual funds that use methodology pioneered by Newport Beach, California-based Research Affiliates.