Related: J.P. Morgan Muscles in on the ETF Industry
There are currently 2,261 U.S.-listed exchange traded products on the market with an average expense ratio of 0.58%. There are now a handful of ETFs that come with a dirt cheap expense ratio of as low as 0.03%.
The race to zero is coming closer to reality. In August, Fidelity Investments began offering index funds charging zero fees. Timo Pfeiffer of Solactive AG, which constructs tailor-made indexes that $200 billion of investment products rely on, argued that ETF providers may end up paying for the privilege of having their products included in customers’ portfolios someday in the near future.
For more information on the ETF industry, visit our ETF performance reports category.