ETF Trends
ETF Trends

Vanguard Group is upping the ante by lowering fees and putting pressure on rival exchange traded fund (ETF) providers. Last week Vanguard, filed a registration for an ETF tracking MSCI-EAFE. John Spence for MarketWatch.com reports this move caused quite a stir among the industry because the second largest U.S.-listed ETF by assets tracks the same index-iShares MSCI EAFE Index Fund (EFA), sponsored by Barclays Global Investors. This $45.5 billion ETF is popular among investors for the international exposure. Vanguard’s fund in registration, the Vanguard Europe Pacific ETF boasts an expense ratio of 0.15%, half of the 0.35% required by Barclays. The fee war has already had an impact on conventional mutual funds. In the end, the individual investor is the winner.

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.