ETF Fees: How Low Can They Go?
By Tom Lydon:
Exchange traded fund providers are in a fee war, slashing expense ratios in an effort to gain market share. The three biggest providers, by assets, are leading this battle - BlackRock, State Street and Vanguard."ETF companies have been lowering fees pretty aggressively this year because the market is reaching saturation," says Gregory Spear, President of Spear Capital Management. "While the overall number of funds is still growing, there are nevertheless a lot of funds that just can't attract enough liquidity to stay viable."The lower ETF fees are actually raising demand for these funds, evidenced by the slurry of new product debuts. Since the start of 2012, about 74 new ETFs have come to market with an average expense ratio of 0.61%, reports Seana Smith for Fox Business. Currently, there are about 1,435 ETFs trading, according to XTF Research.The competition is tightest among the three largest fund providers,Complete Story »