Our nation’s largest exchange traded fund (ETF), the SPDR Trust (SPY) which tracks the S&P 500 index, is lowering its expense ratio. Beginning February 1, ordinary expense ratios of the ETF, net of a trustee waiver, will accrue at 0.0945%. John Spence of MarketWatch.com reports that for the fiscal year ended September 30,2006, ordinary operating expenses of the ETF were 0.1204%, but the excess over 0.1000% was waived by trustee, State Street Corp. An ETF tracking the S&P 500 managed by Barclay’s Global Investors, iShares S&P 500 Index (IVV), has an expense ratio of 0.09%.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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