If you’ve been wondering where the bottom on exchange traded fund (ETF) expense ratios might be, it’s not here.

iShares recently became the first industry player in 2011 to cut its ETF prices, trimming the expense ratios for 34 of its ETFs, reports Robert Goldsborough for Morningstar. [Where’s the Bottom on ETF Fees?]

The fee reductions are small ones – between 0.1% and 0.5% – and they affect only ETFs that invest in foreign-domiciled companies. The two main reasons the provider lowered their fees are management-fee breakpoints and foreign taxes. [In the ETF Price War, The Winner Is…]

Though the reductions are small, every small amount adds up over decades of investing, so you can chalk this one up for the investor “win” column.

iShares noted that certain iShares ETFs are subject to foreign taxes on income, corporate events, capital gains, or currency repatriation, and that these taxes have an impact on the funds’ fees. Declines on foreign taxes are affecting the following:

  • iShares MSCI France (NYSEArca: EWQ)
  • iShares MSCI Taiwan (NYSEArca: EWT)
  • iShares MSCI Emerging Markets (NYSEArca: EEM)
  • iShares MSCI Thailand (NYSEArca: THD)
  • iShares MSCI Peru Capped Index (NYSEArca: EPU)

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.