Cost Competition: Inflows Surge For Cheap ETFs

The ETF industry has been praised for the many advantages that it offers investors. Exchange traded products are liquid, transparent, and cover a broad range of investment classes to help round out portfolios. On top of all of these advantages lies the cost factor; one of the founding principles of ETPs was to maintain cost efficiency that had been lost on mutual funds. With some funds offering expenses as low as just five basis points, investors have been reaping the rewards of effective fee structures ever since the first ETF debuted [see also Giving Thanks: Ten Reasons ETFs Are Better Than Mutual Funds]. In recent years, issuers have began something of a cost battle by slashing prices to gain an edge on a similar fund offered by a competitor. Many were unsure how this strategy would turn out, as the ETFs who saw costs drop would now make less money [...] Click here to read the original article on ETFdb.com. Related Posts: How ETF Investors Can Save $415 Million (Without Breaking A Sweat) Alternatives To The 20 Most Popular ETFs Schwab Debuts Cheapest Ever Bond ETF (SCHZ) November ETF Stats: Small Step Back ETF Misnomers: Why You Never Judge A Fund By Its Cover