Charles Schwab entered the exchange-traded funds space today with an announcement that it was bringing out eight new ETFs with lower expense ratios than the competition.

The ETFs will trade commission-free for Schwab clients. “This is a breakthrough offering and a situation once again where Schwab is challenging the status quo,” Peter Crawford, Schwab’s senior vice president of Investment Management Services, said at a luncheon today.

Hoping to ultimately duplicate the firm’s one-source platform for mutual funds with ETFs, Schwab plans to introduce its first four ETFs tomorrow on November 3 on the New York Stock Exchange. The ETFs are compiled in conjunction with Dow Jones for domestic indexes and FTSE for international investments, the largest index company outside the United States.

The first four funds, and their corresponding symbols, are: the Schwab U.S. Broad Market ETF (SCHB), the Schwab U.S. Large-Cap ETF (SCHX), the Schwab U.S. Small-Cap ETF (SCHA) and the Schwab International Equity ETF (SCHF).

These four will be followed in December by: the Schwab U.S. Large-Cap Growth ETF, (SCHG); the Schwab U.S. Large-Cap Value ETF, (SCHV); the Schwab International Small-Cap Equity ETF, (SCHC) and the Schwab Emerging Markets Equity ETF, (SCHE).

Crawford said that 50% of the assets in ETFs are in the eight categories the company is launching.

Schwab said that its ETFs would have lower expense ratios than its rivals. For example, in figures provided by Schwab, its Broad Market ETF has a expense ratio of 0.08% compared with the equivalent Vanguard fund expense ratio of 0.09% and the Barclay’s IWV with an expense ratio of .21%. The large-cap growth, value and small-cap funds carry expense ratios of 0.15%, matching Vanguard’s expense ratios for the group.

Meanwhile, the international small-cap ETF will have an expense ratio of 0.35% compared to the Vanguard equivalent of 0.38%. Only the emerging markets equity offering appears to be slightly higher at 0.35% compared to Vanguard’s product with a 0.27% expense ratio.

There are virtually no minimums or maximums on the new ETFs.

“It may be a game changer because advisors are sensitive about clients seeing commission charges on their statements,” Tom Lydon, editor of ETFtrends.com, said. “It’s great for the ETF industry. This shows it’s not just some fad.

Matt Hogan, the editor of Index Universe, a website devoted to ETFs and other index investments, said:   “Other companies will sit back and see if funds flow in and then maybe follow suit.” Hogan said he expects new money coming in from the sidelines to go into the new ETFs rather than people switching out of other ETFs to take advantage of the lack of commissions. He added that he anticipates Schwab to develop hundreds of its own ETFs in the future. “I think you’ll see a significant shift from mutual funds to ETFs in the next two years,” Hogan said.