Vanguard points out that its emerging market fund, VWO, offers cost savings for investors and advisors. VWO has an expense ratio of 0.2% compared with 0.67% for the iShares ETF. BlackRock recently launched iShares Core MSCI Emerging Markets ETF (NYSEArca: IEMG), which has an expense ratio of 0.18%. [iShares Emerging Market ETF is Top Seller After Vanguard Index Switch]
“We anticipated a certain amount of leakage of assets,” John Woerth, a Vanguard spokesman, said in a Bloomberg report this week. “However, we’re willing to sacrifice short-term cash flow to lower costs for all of our index-fund shareholders.”
Vanguard MSCI Emerging Markets
Full disclosure: Tom Lydon’s clients own EEM and VWO.
