Schwab Discount Brokerage Starts International-Stock 'Fund of Funds'

Charles Schwab & Co. last week announced the launching of its first "fund of funds" for individual investors.

Schwab is calling the fund its OneSource Portfolios-International. It comprises international stock funds available through Schwab's OneSource service.

Schwab picks the funds from more than 40 available on OneSource and packages them as one fund, the company said. Minimum investments of $1,000, or $500 for individual retirement accounts, are required by the new fund.

People who buy the fund will be charged 50 basis points, or $5 per $1,000 invested, of management and operational fees, Schwab said. There's no transaction fee.

Schwab, the biggest U.S. discount brokerage, said it expects two more funds of funds will be available this fall. It is awaiting approval from the Securities and Exchange Commission for the two funds to be sold to the public.