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Non-Tech : E*Trade (NYSE:ET) -- Ignore unavailable to you. Want to Upgrade?

To: Dragonfly who wrote (2959)	5/28/1998 8:32:00 PM
From: Bikergirl	Read Replies (2) \| Respond to of 13953

I apologize. I did not clarify my statement. What I meant to say was that mutual funds are not a major source of revenue for ETrade. I am well aware of the fact that they do offer mutual funds. Its just that Schwab receives 25-35 basis points from mutual funds companies, if the fund companies wish to be included in Schwab's "One Source" program. I don't know what deal ETrade has worked out with the fund companies, but I doubt it is as lucrative. Schwab also has their own proprietary mutual funds, which I think are mostly index funds. I do not know what % of their revenues are derived from mutual funds, but I would guess that it would be a much greater % than EGRP's MF revenues. It is not important to me to know the breakdown. You are welcome to do the research, if the info is available. My point is that E*Trade relys at this point almost solely on commissions & margin interest, plus the occasional licensing fee for co-branding with foreign brokerage firms, whereas Schwab has a much more diversified revenue stream. It remains to be seen whether EGRP's alliances with outfits like E-Loan will produce significant revenues.