Van Eck Cuts Fees on Poland, Indonesia ETFs
Michael Johnston submits:Van Eck has become the latest ETF issuer to announce ETF fee reductions, lowering the expense ratios on two of its country-specific international ETFs. Effective January 26, the expense cap on the Market Vectors Indonesia Index ETF (IDX) was lowered from 0.68% to 0.60%. The expense cap on the Market Vectors Poland Index ETF (PLND) was lowered from 0.65% to 0.60%. The expense reductions will remain in place until at least May 1, 2012. “International funds generally have higher net expense ratios than domestic funds but we try to pass on lower expenses to shareholders as we achieve economies of scale,” said Jan van Eck, principal at Van Eck Global. Van Eck was the first issuer to introduce “pure play” ETFs focusing on the economies of Indonesia and Poland. But in the last year, iShares has launched direct competitors to these products: the MSCI Indonesia Investable Market Index Fund (EIDO) and MSCI Poland Investable Market Index Fund (EPOL) both began trading in May 2010. With more than $600 million in assets at the end of 2010, IDX has remained the preferred choice for exposure to Indonesia (EIDO finished the year with about $300 million). But the iShares Poland ETF already dwarfs PLND in terms of assets (PLND finished last year with about $53 million, compared to $100 million for EPOL).Complete Story »
- Original article
- Login or register to post comments
