Daily ETF Watch: 2 Firms Make Fee Changes

December 30, 2014

 

Vanguard and iShares have recently announced changes to the fees associated with their ETFs. As the ETF industry expands, there is a general downward pressure on fees. Often fees are partially based on the amount of assets under management, as in the case of Vanguard and iShares.
 

 

Vanguard

 

Effective Dec. 23, Vanguard lowered the expense ratios on 12 of its funds to 0.12 percent. The funds and the number of basis points their fees were reduced by are as follows:

 

 

VFH had the most dramatic reduction, at 7 basis points, but that may be because its assets under management increased by nearly $1 billion to $2.7 billion during 2014.    

 

iShares

Meanwhile, iShares changed the fees on 41 of its funds, including 22 reductions and 19 increases. Except for the iShares MSCI Pacific Ex Japan ETF (EPP | B-97), which saw its expense ratio reduced by 1 basis point to 0.49 percent, all of the following ETFs—which are almost all single-country funds—saw their expense ratios lowered to 0.48 percent. We also show how many basis points their fees were reduced by:

 

 

Another 19 iShares ETFs—again, almost all single-country funds—saw their expense ratios increase by 1 basis point. Those funds and their new expense ratios are as follows:

 

 

Another 14 iShares saw their fee waivers extended through the end of next year, Dec. 31, 2015:

 

 

 

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