ETF Trends
ETF Trends

Apparently fees matter to ETF investors. The low-cost option from Vanguard for emerging market stocks is the best-selling ETF in 2012.

Investors have pumped $7.4 billion into Vanguard MSCI Emerging Markets (NYSEArca: VWO) this year as of June 30, according to data from the ETF Industry Association. The developing market fund logged inflows of $1 billion last month.

The Vanguard ETF is dominating the head-to-head battle with rival iShares MSCI Emerging Markets (NYSEArca: EEM), which follows the same index. [Emerging Markets Lead ETF Inflows]

VWO undercuts EEM on fees by a wide margin. VWO has an expense ratio of 0.2% while EEM charges 0.67%. [The 10 Best-Selling ETFs of 2012]

VWO holds assets of $50.5 billion versus $33.1 billion in EEM.

The iShares emerging market ETF was first to market, listing in April 2003, followed by VWO in March 2005.

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