How can iShares reverse the trend of outflows?
Hougan suggests that one way may be to focus on that liquidity advantage and do everything it can to further improve that liquidity, working with market makers, supporting the options market and so on. Taking expense ratio into account and lowering their expense is a hard thing to do since revenue is at stake.
In any case, these two funds are a great example of the kind of increased competition in the ETF market that benefits investors. [A New Way to Play Emerging Markets.]
For more stories about emerging markets, visit our emerging markets category.
- Vanguard Emerging Markets ETF (NYSEArca: VWO)
- iShares MSCI Emerging Markets Index (NYSEArca: EEM)
For full disclosure, Tom Lydon’s clients own shares of EEM and VWO.