ETFs Are Duking It Out Over Fees

By
June 04, 2012
Share:

Related ETFs

Ticker Fund name
GLDSPDR Gold
IAUiShares Gold Trust
Related ETF Lists
Gold ETFs

 

Investors are often running into virtually identical funds—like the iShares Gold Trusts (NYSEArca: IAU) and SPDR Gold Shares (NYSEArca: GLD)—that seem only differentiated by fees. But it may not be worth it to switch funds for small fee disparities, according to an article in the Wall Street Journal.

Though lower fees appeal to investors and draw in newcomers, cashing out of a fund to move toward the cheaper option could backfire if the gains from the sale triggers a tax bill, the article said.

Also, funds with a higher fee may provide investors with a sense of security, as the more expensive fund could hold more assets under management, which affects liquidity, the article said.

Whether the increased attraction to lower fees causes ETF sponsors in general to lower their prices, the end result will wind up benefiting investors, the Journal said.

For more information, visit online.wsj.com.

ETF.COM CHANNELS

Want to learn more about smart-beta ETFs? Check out our smart-beta guide, essentials library and ETF screener!

ETF DAILY DATA

US equity funds paced net outflows on Wednesday, May 27, but rising markets lifted total U.S.-listed ETF assets to $2.163 trillion.

'SPY,' 'JNK' and 'XLV' paced SSgA's issuer-leading outflows on Wednesday, May 27, but rising markets offset net outflows and lifted total U.S.-listed ETF assets to $2.163 trillion.

ETF.COM ANALYST BLOGS

By Olly Ludwig

Yields will one day head higher, so is it time to get bond exposure outside the U.S.?

By Rachael Revesz

Stop dancing around the subject, call women ‘women’ and let’s be a more visible part of this industry.

By Olly Ludwig

It’s no secret that hedge funds love ETFs, but what’s less appreciated is that their love of ETFs will likely spell their demise.

By Olly Ludwig

Yes, bond yields are ticking higher these days, but it’s important to keep the whole yield-curve picture in mind.

ETF INDUSTRY PERSPECTIVE

By Nasdaq Global Indexes

Bond exposure or bond performance? Only defined maturity indexes provide the latter.

By Invesco PowerShares

Invesco PowerShares and Market Strategies International’s second annual survey provides vital insights about smart beta and ETFs overall.

By Invesco PowerShares

Investors are implementing smart-beta exchange-traded funds (ETFs) in their portfolios in a variety of ways and for different reasons.