Some of the largest ETF providers have cut fees over the past three months, as they jockey to gain industry assets. BlackRock’s iShares, Charles Schwab and Vanguard have led the charge in offering high quality ETFs at a discount price. According to the Investment Company Institute, investors have put $536 billion into ETFs since 2010, compared to $306 billion in traditional mutual funds over the same time period. [Schwab Mulls Over Commission-Free ETF Platform: Report]
Fidelity’s press release reported that the cuts were in response to larger institutions and retirement plans adjustments first and foremost and the individual investor’s demands came in second. [The Darker Side of the ETF Fee War]
The drop in fees that has started within the mutual fund industry could be the start of a new trend. However, these cuts are not enough to dissuade ETF investors and put a dent in assets. [Investors Come out on Top in ETF Fee War]
Tisha Guerrero contributed to this article.