Barclays Global Investors is lowering fees on their international exchange traded funds (ETFs). A new prospectus filed with the SEC deals with many of the iShares’ MSCI-linked international funds. According to Barclays, asset counts rose on the funds and the economy-of-scale savings were passed on. Most of the fees dropped four basis points.
As Matt Hougan of Index Universe states, the truth is they have to pass on savings because of a management agreement calling for a direct relationship between fees and asset levels. Nonetheless, shareholders will appreciate a fee reduction.
The fee reduction did not include the popular iShares MSCI Emerging Markets (EEM), as it is not part of the asset-fee relationship. This comes after Vanguard lowered its fee on Vanguard Emerging Markets Stock ETF (VWO).
For full disclosure, some of Tom Lydon’s clients own EEM.
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