Vanguard Keeps on Hauling in ETF Assets

At the sector level, apparently fees are not the most important thing to advisors and investors. State Street’s nine sector SPDRs have seen compound annual growth of 30% in the past three years despite being slightly more expensive than equivalent Vanguard offerings. Only one Vanguard sector ETF, the Vanguard Information Technology ETF (NYSEArca: VGT) ranks among the 100 largest ETFs but all nine SPDRs are on that list. [SPDRs Flourish in the Face of Rising Competition]

BlackRock is also not taking the competition lightly. Last year, the firm introduced the core series of ETFs, a suite of 10 ETFs with lower fees designed for cost-conscious, conservative investors. The iShares Core MSCI Emerging Markets ETF (NYSEArca: IEMG) has the same annual fees as the Vanguard FTSE Emerging Markets ETF (NYSEArca: VWO) at 0.18%, but IEMG has outpaced VWO this year.

A similar scenario is seen with Europe ETFs. The Vanguard FTSE Europe ETF (NYSEArca: VGK) is the largest Europe ETF and it is cheaper than the SPDR EURO STOXX 50 (NYSEArca: FEZ) by 17 basis points. However, FEZ outperformed VGK by 260 basis points for the 12-month period ending Dec. 3. [Settling the Europe ETF Debate]

Vanguard FTSE Europe ETF