It’s the name of the exchange traded fund (ETF) industry game these days: slash the fees and they will come.
ETF providers and brokerages have been slashing fees and cutting expenses on many ETFs. Some providers are even offering free trades within in-house brokerages.
The latest fund to get the lower-fee treatment is First Trust BICK Index Fund (NASDAQ: BICK), which reduced its expense ratio from 0.70% to 0.64%. [ETF Providers Duke It Out.]
The reduction in the management fee will have no effect on the services provided to the fund by First Trust and will be effective as of Oct. 1, 2010. The Index is designed to provide a benchmark for investors interested in tracking some of the largest and most liquid public companies that are domiciled in Brazil, India, China (including Hong Kong) and South Korea that are accessible for investment by U.S. investors. [Schwab Slashes Fees On 6 ETFs.]
Read more about BICK and its performance, holdings and more on the ETF Resume.
Tisha Guerrero contributed to this article.
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.