In announcing
its ETF fee cuts, Marie Chandoha, president and CEO of CSIM (Charles Schwab Investment Management), said as much, noting «the appeal of index investing continues to accelerate.
Not exact matches
Last November, BlackRock (blk)
cut fees on seven of its
ETFs to shore up its leading position in the business.
Vanguard
Cuts Fees On 13
ETFs Vanguard slashed expense ratios on 13 of its
ETFs in April, including a nearly 17 percent
cut in the price of its Vanguard S&P 500
ETF (NYSE Arca: VOO), a 14 percent price
cut on its Vanguard Total Stock Market
ETF (NYSE Arca: VTI) and a 9 percent price
cut on its Vanguard Total Bond Market
ETF (NYSE Arca: BND).
IndexIQ said it will be
cutting fees on one of its most successful
ETFs, the IQ Hedge Multi-Strategy Tracker
ETF (QAI), by some 22 %.
The move comes less than two months after IndexIQ changed expense ratios on nearly half of its
ETFs, some of which saw
fees cut, others increased.
Most of the management
fee cuts were in
ETFs that compete directly against Vanguard like the iShares S&P Total Stock Market
ETF and iShares Total U.S. Bond Market
ETF.
Horizons
cuts fees, Questrade expands active
ETFs and CSA to review robo advisers: Jonathan Chevreau on the latest news in
ETFs
Most dramatic of the
fee cuts is on the iShares S&P / TSX Capped Composite Index
ETF (XIC / TSX).
If you're set on
cutting fees while maintaining a well diversified portfolio, you've probably discovered Exchange Traded Funds (
ETFs).
But she emphatically declined to characterize the
fee cuts as an
ETF price war.
Less than a month ago, BlackRock aggressively
cut the management
fees on several of its core
ETFs.
In a blog comparing the two
ETFs, PWL Capital investment advisor Dan Bortolotti said «BMO's aggressive cost -
cutting has made ZAG the cheapest bond
ETF in the country, with a management
fee of just 0.09 %» that has been in place since June 2016.
Several other iShares
ETFs have seen
fees cut in half: two bond
ETFs with MERs of 0.25 % and 0.3 % (XSH and CAB) have both been
cut to 0.12 % while the 0.35 %
fee of the iShares Canadian Long Term Bond Index
ETF (XLB) has been almost halved to 0.18 %.
Even if you're a fan of active management, you could
cut your
fees by a third simply by investing in an actively managed fund for the stock component of your portfolio, buying a low - cost bond fund or an
ETF for the fixed - income portion of your portfolio, and holding your cash in a high - interest bank account or money market fund.
EHI's
fees are pretty high (well into mutual fund
fee range) considering that the average
ETF's
fee is around 0.53 % < >, but even after the slight dividend
cut it's getting a 10.0 % yield for me, so the high
fee is... tolerable.
Ms. Cohen explains that costs for this
ETF were
cut in the past year, but declining assets meant that the
fees paid by investors increased to 0.09 per cent from 0.07 per cent.
Yesterday, BlackRock (NYSE: BLK) did another round of
fee cuts on many of its popular iShares
ETF offerings.
Rather than
cutting fees on its existing offerings, the company is instead creating brand - new
ETFs for its Core Series.
It's easy to applaud iShares for
cutting fees on some of its popular existing
ETFs.
Keeping costs down It was clear that BlackRock needed to make some response to the
cuts that Vanguard and Schwab (NYSE: SCHW) have made to their
ETF fees.
Similarly, it's making
fee cuts to its benchmark bond - market
ETF.
Getting cheaper BlackRock actually couched its
fee -
cutting announcement in a broader message about creating what it calls Core Series
ETFs, purportedly tailored for long - term buy - and - hold investors.
Consider buying
ETFs in a lump sum rather than periodic small amounts to
cut down on brokerage
fees.
Barclays did not have much incentive to
cut their
fees so far and the new
ETF provides some welcome competition.
«This switch to iShares provides our investors with access to the industry - recognized,
cutting - edge
ETFs of iShares and also provides our clients with lower
fees,» Coté notes.
He told the Globe and Mail he doesn't expect his firm's
ETFs will have to
cut fees to be competitive.
To
cut down on the overall
fees associated with managing your account, Personal Capital uses baskets of individual securities and
ETFs to create a model portfolio.
This is a very important concept for passive or index investing but it's important to understand that not all index funds and
etfs are
cut from the same cloth when it comes to
fees.
Robo - advisers typically invest in inexpensive passive index funds or
ETFs - for example we only charge 0.7 %,
cutting that # 750 yearly
fee to less than half.
With the global
ETF, you would
cut your trading
fees in half but if you have a significant amount of money then higher mer makes up for the reduction of trades.
The good thing about
ETFs is that they
cut the management
fees you pay to an absolute minimum — in most cases, less than a quarter of what you would pay for an equivalent mutual fund.
My rough minimum for using
ETFs is $ 50,000, but the actual
cut - off varies a lot depending which specific
ETFs or index funds you use, the commission charged by your brokerage, how many trades you make, and whether the brokerage charges an annual account
fee.
BMO's aggressive cost -
cutting has made ZAG the cheapest bond
ETF in the country, with a management
fee of just 0.09 %.
Charles Schwab, the discount broker known for its low - cost
ETFs, took the battle in
fees to its arch rival Vanguard by
cutting prices on all 15 of its
ETFs ranging from 25 percent to 60 percent, resulting in each of the
ETFs being cheapest in their respective Lipper categories.