Expense


 

What ETFs Really Cost [0.09]

Posted on Aug. 1, 2017, 6:45 p.m. by HOME @ [source]

How much does it actually cost to own an ETF? This metric includes all internal costs of the fund, such as items we sometimes see itemized in a prospectus, like the management fee, which is how much an issuer charges for its fund management services.

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ETF Fee War Reignites [0.11]

Posted on June 29, 2017, 8:30 p.m. by HOME @ [source]

Within the past 48 hours, two midtier ETF issuers have launched what appears to be a new phase of fee compression in ETFs—specifically, smart-beta ETFs.

Today Guggenheim announced it would literally halve the cost of its largest fund, the $13 billion Guggenheim S&P 500 Equal Weight ETF (RSP), from 0.40% to 0.20%.

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ETF Watch: Horizons Plans Covered Call Fund [-0.08]

Posted on June 23, 2017, 7:45 p.m. by HOME @ [source]

Horizons ETFs has filed for another ETF that will implement a covered-call strategy. The Horizons Russell 2000 Covered Call ETF will join two other covered-call Horizons funds: one tied to the S&P 500 Index and the other to the Nasdaq-100 Index.

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ETF Watch: Fund Closure Pace Slows [0.07]

Posted on May 30, 2017, 3:30 p.m. by HOME @ [source]

The latest exchange-traded product to be shuttered is the Credit Suisse X-Links Long/Short Equity ETN (CSLS), which stopped trading last Thursday, May 25.

Say you launched a smart-beta ETF that carries a 0.50% expense ratio.

assets AUM closures costs CSLS etf expense fewer listed ratio

 

ETF Watch: JP Morgan Launches Bond Fund [0.10]

Posted on May 19, 2017, 5 p.m. by HOME @ [source]

Today J.P. Morgan is rolling out an actively managed ETF that targets the “ultra-short-term” portion of the USD-denominated investment-grade debt space. The stated goal of the JPMorgan Ultra-Short Income ETF (JPST) is to provide current income while achieving low volatility of principal, according to the prospectus.

duration expense fund income interest JPST prospectus rate securities volatility

 

ETF Watch: Vanguard Cuts Expense Ratios [0.11]

Posted on May 1, 2017, 7:45 p.m. by HOME @ [source]

Vanguard has announced lower expense ratios for 82 of its mutual fund and ETF shares.

The 14 other affected ETFs include the following: the FTSE Developed Markets (VEA), Value (VTV), Growth (VUG), Short-Term Bond (BSV), Mid-Cap (VO), Small-Cap (VB), Intermediate-Term Bond (BIV), Large-Cap (VV), Small-Cap Value (VBR), Mid-Cap Value (VOE), Small-Cap Growth (VBK), Extended Market (VXF), Long-Term Bond (BLV) and Mid-Cap Growth (VOT).

assets automatic cuts expense firm fund increases management ratio Vanguard

 

In a market where returns are expected to be lower than in the recent past, administrative and investment fees can take a very big bite out of the returns you earn in a 401(k) account and dramatically reduce the nest egg you accumulate from decades of saving.

In 2013 the Department of Labor, which regulates corporate retirement plans, provided a simple calculation demonstrating the impact of such expenses on retirement savers.

annual asset balance corporate costs expense plan quarterly ratio sponsors

 

In a market where returns are expected to be lower than in the recent past, administrative and investment fees can take a very big bite out of the returns you earn in a 401(k) account and dramatically reduce the nest egg you accumulate from decades of saving.

In 2013 the Department of Labor, which regulates corporate retirement plans, provided a simple calculation demonstrating the impact of such expenses on retirement savers.

annual asset balance corporate costs expense plan quarterly ratio sponsors

 

ETF Watch: ETFS Debuts K-1 Free Commodity Funds [0.02]

Posted on March 31, 2017, 12:30 p.m. by HOME @ [source]

Today ETF Securities is rolling out three ETFs that will cover the commodity futures space while allowing investors to forgo the problematic issue presented by the K-1 tax forms usually required of futures-based funds.

The funds’ expense ratios and the fact that there are no K-1 tax forms associated with them lie at the heart of their appeal and are a potentially powerful selling point.

broad commodity etf expense fund futures index oil portfolio portion

 

ETF Watch: Actively Managed Income Fund Launches [-0.02]

Posted on March 30, 2017, 1 p.m. by HOME @ [source]

Today a newcomer to the ETF space, StrongVest, is launching an actively managed ETF carrying the brand name of another firm, CWA Asset Management Group. The CWA Income ETF (CWAI) is primarily concerned with generating total return, and comes with an expense ratio of 0.75%.

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Barclays ETNs Crowd Path Of The Walking Dead [0.11]

Posted on March 22, 2017, 3:30 p.m. by HOME @ [source]

There’s a lot written about the biggest ETFs, about the amount of new assets they are attracting, about how big a market share they consume and about how they revolutionized investing.

All the top ETFs measured by assets under management are excellent products that trade like water and are popular because they deliver what they say they will, which is usually plain-vanilla, broad market equity exposure at a dirt cheap price—you know, ETFs like the $237 billion SPDR S&P 500 ETF Trust (SPY), the $102 billion iShares Core S&P 500 ETF (IVV), the $76 billion Vanguard Total Stock Market Index Fund (VTI) and so on.

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Rebalancing Of Smart Beta ETFs Often Overlooked [0.20]

Posted on March 8, 2017, 8:15 p.m. by HOME @ [source]

Todd Rosenbluth is director of ETF and mutual fund research at CFRA.

With Vanguard’s latest expense reduction on market-cap-weighted index mutual funds and ETFs—matching in many cases the cost for similar iShares products—it is easy to forget that most asset managers are steering clear of this battlefield and focusing on an alternative approach.

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ETF Watch: More Vanguard ETFs See Fees Reduced [0.10]

Posted on Feb. 24, 2017, 5 a.m. by HOME @ [source]

Vanguard has announced another wave of expense ratio reductions affecting 68 share classes. This is the third round of expense ratio reductions Vanguard has announced in just three months.

affected announced expense fund months ratio reductions savings shares Vanguard

 

This ETF’s $100 Billion Milestone Approaching [0.15]

Posted on Feb. 22, 2017, 8:45 p.m. by HOME @ [source]

Nearly a decade after the first ETF did it, another exchange-traded fund is about to hit a key milestone. The iShares Core S&P 500 ETF (IVV) is fast approaching the $100 billion in assets under management (AUM) mark, a level first reached by the world's largest ETF, the SPDR S&P 500 (SPY), in December 2007.

assets AUM etf expense index IVV past ratio spy year

 

How To Make Money In The ETF Business [0.08]

Posted on Feb. 9, 2017, 3 p.m. by HOME @ [source]

We cover flows all the time, but you might be surprised where the revenue actually is in ETFs.

ETF flows tell us a lot—mostly about investor sentiment.

assets Big etf expense flows fund implied market ratio revenue

 

ETF Watch: New InfraCap ETF Debuts [0.08]

Posted on Feb. 8, 2017, 5 a.m. by HOME @ [source]

Today another InfraCap-branded ETF is launching on the NYSE Arca. The InfraCap REIT Preferred ETF (PFFR) comes with an expense ratio of 0.45%.

etf expense iBoxx index iShares PFFR preferred REIT securities yield

 

ETF Watch: iShares Plans Argentina Fund [0.17]

Posted on Feb. 3, 2017, 5 a.m. by HOME @ [source]

BlackRock’s iShares unit has made an interesting stand-alone filing for an ETF that will invest in companies that offer exposure to Argentina’s market even if they are not listed or headquartered in the country.

The fund’s underlying index, the MSCI All Argentina 25/50 Index, includes 25 companies.

Argentina companies expense exposure filing include index iShares MSCI ratio

 

What Trump's Tax Cuts Mean For ETFs [0.01]

Posted on Jan. 18, 2017, 10:30 p.m. by HOME @ [source]

Corporate taxes are going to go down under a Trump administration; that much is certain. The president-elect has proposed cutting the current statutory rate from 35%―the highest among developed nations―to 15%.

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Key Differences Between 2 Cybersecurity ETFs [0.11]

Posted on Jan. 17, 2017, 3:45 p.m. by HOME @ [source]

The World Economic Forum, in its assessment of the biggest threats to the global economy in 2017, said that the No.

The two ETFs, the PureFunds ISE Cyber Security ETF (HACK) and the First Trust Nasdaq Cybersecurity ETF (CIBR), are very similar in composition, tapping into a relatively small universe of anti-hacker stocks.

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ETF Industry Revenue Challenged By Fee Wars [0.08]

Posted on Jan. 12, 2017, 4:45 p.m. by HOME @ [source]

We often talk about the impressive growth of the ETF industry—the nearly 2,000 U.S.-listed ETFs in a market that now commands more than $2.6 trillion in the U.S. alone.

Revenue potential for ETF issuers is often put face-to-face with an ongoing race to the bottom when it comes to investment costs.

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