While stocks took a considerable dip last year, assets in most niche-sector exchange traded funds (ETFs) mirrored the markets decline and now different ETF providers are vying to keep hold of their fair market share.
Many different reviews done by different stock exchange research institutes have concluded that assets across the board have been following a similar downward trend, writes Murray Coleman for for IndexUniverse.
Recently, Vanguard and State Street Global have both adjusted their prices which has put them as the two leading contenders for low-cost ETFs in the marketplace. Vanguard sector ETFs now have expense ratios of 0.25% each, while SSgA has dropped its expense ratios to 0.21%.
This is all part of good, old-fashioned healthy competition. As we see more providers enter the ETF realm, we’ll see many more angling for a competitive spot in the market, which will only further benefit the investor.
The prudent investor will always be on the look out for good deals, and one of the best ways is through browsing through funds with lower expenses.
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.