Charles Schwab & Co. has launched a new mutual fund that uses predetermined mathematical formulas to pick stocks, instead of more tradition methods.
The Schwab Analytics Fund, a so-called quantitative fund, will invest primarily in stocks of medium to large U.S. companies. Schwab manages 24 other fund portfolios with $35 billion of assets.
The new fund will try to exceed or at least match popular indexes such as the Standard & Poor's 500 - a common benchmark for U.S stocks.
Schwab announced Tuesday it is offering the funds at $10 per share until June 28. Thereafter the price of the shares will fluctuate. Investors in the new fund will not be charged up-front or back-end sales fees, also known as loads.