ETF Fees: The Lower The Better

Tue, 06/05/2012 - 13:03 EDT - Seeking Alpha

The exchange traded fund industry is in direct competition with the mutual fund business as far as fees are concerned. Another direct competitor to the ETF industry is itself, as ETF providers are contending to have the lowest fees in the business."While many products may appear similar on the surface-with similar industry, holdings, and market cap focuses-the expense ratio can often be the main, and usually key, difference between two products. After all, why would investors want to pay three times as much for virtually the same product?" asks Zack's ETF Research.Price has become the deciding factor in the ever-growing ETF universe. The long term effect of this tactic is not yet known, but for now, investors can enjoy the convenience of owning low cost ETFs while preserving principle. In many cases, holding a higher-priced fund may be more beneficial, but at the least, the ETF fee warComplete Story »

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ETF Fees: The Lower The Better

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