Some of the most expensive exchange traded funds (ETFs) have an expense ratio of 0.95%. These ETFs generally serve a different, more specific need than most inexpensive, broad-based funds, such as SPDRs (SPY) or PowerShares QQQ (QQQQ), reports Amanda B. Kish for The Motley Fool.
It’s highly likely that investors who are leveraging or selling the market short are not long-term, buy-and-hold types. They usually make numerous trades into and out of these ETFs. While this strategy might not be for everyone, investors who do trade often, may incur more fees with commissions and high expense ratios. If you are the buy-and-hold type, and find these holdings fit well in your portfolio, then you may just be paying a higher expense.
The most expensive ETFs include:
- HealthShares European Specialty Health Funds
- ProShares Short Index Funds
- ProShares Ultra Index Funds (leveraged long)
- ProShares Ultrashort Index Funds (leveraged short)
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.