“While the awards take into account past results, performance is only part of the story. Costs are important to ETF investors, and the total cost of holding an ETF goes beyond simple expense ratios, which is why the awards also consider estimated holding costs and liquidity costs. Because performance can be fleeting, we emphasize cost analysis because fees have less variance year to year,” Justice added.
Expense ratios provide a definitive explicit cost, but ETF investors may notice implicit costs, as well. For example, investors may suffer an indirect loss if the ETF’s performance starts deviating away from its underlying holdings.
For more more information on past conferences, visit our ETF conferences category.
Max Chen contributed to this article.
