When Cheaper Is Not Better With ETFs

July 31, 2012

 

As the ETF industry expands and pricing becomes more competitive, investors may be drawn to cheaper funds, but a difference of 0.6 percentage points may not outweigh the advantage of similar—yet more expensive—ETFs, according to an article on Benzinga.

The following were highlighted by Benzinga contributor “The ETF Professor” as prime examples of ETFs that are more expensive than other funds, but outperforming their rivals because of factors such as broader indexes:

  • Vanguard Consumer Discretionary ETF (NYSEArca: VCR)
  • iShares High Dividend Equity Fund (NYSEArca: HDV)
  • First Trust Brazil AlphaDex Fund (NYSEArca: FBZ)

 

For more on how and why these funds are superior to their counterparts, head over to Benzinga.com.

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