Investors in exchange-traded funds with limited assets under management are getting hit by large bid-ask spreads, rising expense ratios and illiquid trading activity, according to a new report from the Wall Street Journal’s Eleanor Laise.
Laise’s research shows that nearly half of all ETFs with less than $50 million in assets under management trade with an average spread of 0.50% or more, making them prohibitively expensive for investors to use in portfolios.
The California State Teachers’ Retirement System is reconsidering the split between its active and passively managed investments, according to a new report by Global Pensions magazine.
CalSTERS currently has $68.7 billion invested in passively managed equity strategies, representing approximately 70% of its U.S. equity portfolio and 50% of its international equity portfolio.
Schwab isn't just moving into ETFs. It's also focusing more on index mutual funds, possibly posing Vanguard's biggest threat in years.
SEC & FINRA Warn About Dangers Of Juiced ETFs
Regulators combined forces on Tuesday to issue a joint release warning investors against the potentially dangerous impact of leveraged ETFs on long-term-oriented portfolios.
You can read this Reuters story, which includes reaction from ProShares, here.