The phrase of the year for the exchange traded fund (ETF) industry is gearing up to be “price wars.”
The latest move to lower costs has come from FocusShares, which recently priced some of its funds to undercut competing products from the ETF industry’s low-cost providers Vanguard and Charles Schwab. [ETF Providers Are Setting Sights on India.]
EMII.com reports that the funds that will undercut the competition are:
- Morningstar U.S. Market Index ETF will be priced at 0.05%
- Monringstar Large Cap Index ETF will also be priced at 0.05%
The company is also set to launch 15 new U.S. equity funds, which will use Morningstar indexes and cover just about every investment sector and style in the U.S. equities universe. FocusShares is also expected to offer commission-free trading, now that it’s operating as a unit of Scottrade. [New Oil ETF and a New ETF Provider.]
Also of interest this week, according to ETF Daily News, is Global X, which filed to launch a small-cap fund tracking companies in Singapore. The proposed Global X Singapore Small-Cap ETF will track the Solactive Singapore Small-Cap Index. Tickers and expense ratios are still to be determined.
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.