The new ETF will begin trading on October 11.

Charles Schwab Investment Management, an asset management arm of Charles Schwab, has launched the Schwab 1000 Index ETF (SCHK), a new low-cost way to gain exposure to the potential growth of America’s largest 1,000 stocks.

The new exchange-traded fund will begin trading on October 11, and will be immediately available through Schwab’s commission-free ETF program Schwab ETF OneSource, Charles Schwab IM said.

With an operating expense ratio (OER) of five basis points (0.05 per cent), the Schwab 1000 Index ETF will offer broad US market exposure at a low cost that is one-half to one-third the expense of other widely recognized ETFs tracking the largest 1,000 US stocks, according to the firm.

“Index investing is a fantastic way to build the core holdings of an investment portfolio,” said Schwab founder and chairman Charles Schwab. “Companies are made to grow, and we launched the Schwab 1000 Index and mutual fund in 1991 to help investors participate in the innovation and long-term growth of the largest 1,000 stocks in the US in a simple and cost-effective way. “I’m thrilled that investors can now benefit from the potential growth of these firms with the ease and efficiency of a low-cost ETF.”

The Schwab 1000 Index ETF is the 22nd ETF offered by Charles Schwab Investment Management.

Founded in 1989, Charles Schwab Investment Management has more than $320 billion in assets under management as of June 30.