03/09/2011
ETF issuer Vanguard recently announced that it was slashing costs on a bevy of its fund offerings. The latest move from Vanguard is part of an industry-wide move to cut fees and attract bigger chunks of the ETF investor pie.
Earlier this year, the Select Sector SPDRs cut annual fees on their nine S&P 500 industry sector ETFs. BlackRock, manager of the iShares Gold Trust (IAU), also cut fees, making them even cheaper than their larger rival, the SPDR Gold Shares (GLD).
So, who is going to come out on top of this ETF price war?
The answer is -- you!
That’s because the more aggressive these ETF issuers are in trying to capture your investment dollars, the lower the cost will be to hold an investment. When you lower costs, you increase your bottom line return -- and that’s something all investors can smile about.