Fidelity’s 10 sector ETFs, though, are the cheapest equity sector ETFs on the market, which is not surprising since the funds have to come with some competitive edge when put up against the older Vanguard and SPDR sector funds.
Additionally, the State Street-MFS funds have a reasonable 0.6% expense ratios for active strategies while the Emerging Global-TCW bond ETFs charge 0.65%, which is slightly more than other emerging market debt ETFs.
Nevertheless, the increased activity should help expand the tools available for ETF investors.
“We would not be surprised to see more ‘marriages’ between traditional fund managers and ETF issuers in the future,” Goldsborough added. “Such pairings can play to the respective firms’ strengths and can help get investment ideas to market faster. ”
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Max Chen contributed to this article.