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Active ETFs Push Industry Fees Higher

ETF.com sent this email to their subscribers on July 10, 2024.

Morningstar research shows that a proliferation of popular ETFs has pushed average expense ratios higher. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

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Morningstar research shows that a proliferation of popular ETFs has pushed average expense ratios higher. Sponsored by Vanguard Good morning, The growth of more expensive active ETFs is lifting average expense ratios, a Morningstar report shows. The average asset-weighted fee across all mutual funds and ETFs fell 3.4% last year to 36 basis points, which compares to a 7.8% decline in 2022, according to the research group's 2023 U.S. Fund Fee Study. “Fund fees are still declining, but at a slower rate,” said Zach Evans, manager research analyst at Morningstar and lead author of the 2023 U.S. Fund Fee Study. ETFs have exerted fee pressure on asset managers for the past two decades with the asset-weighted average expense ratio falling by more than half from 87 basis points in 2004. Now, the trend has tapered as issuers introduce more innovative active and alternative strategy ETFs charging higher fees. On an equal-weighted basis, which nullifies the effect of where most of the money is invested, the average fund expense ratio ticked up last year to 95 from 94 basis points. By Jeff Benjamin Up and down arrows S&P 500 DOES SPY AND ITS 18% RISE REFLECT U.S. MARKETS? Depending upon which ETF you look at, the U.S. stock market’s performance so far this year has been tepid, fantastic or more likely, somewhere in between. The world’s largest exchange-traded fund, the SPDR S&P 500 ETF Trust (SPY) has broken record highs on its way to gaining 18% this year, just past the year's midway point. Read More Facebook icon X icon LinkedIn icon Solana on a phone CRYPTO CBOE FILES FOR RULES CHANGE TO LIST SOLANA ETFS Cboe has applied to the SEC for rules changes that would allow the exchange to list shares of the first U.S. spot ETFs based on the cryptocurrency Solana. The exchange submitted its filings on Monday for funds proposed by VanEck and 21Shares. Once the SEC acknowledges the applications, the regulator has 240 days to decide on the request, which could come as early as March. Solana, the token of the Solana smart contracts blockchain, is the fifth largest digital asset in market value. Read More Facebook icon X icon LinkedIn icon SPONSORED BY VANGUARD Computer and tablet RISING MARKETS AND INFLOWS LIFT ETF ASSETS TO A RECORD HIGH ETF industry assets rose 8.8% in Q1 to $8.87 trillion, driven by inflows and market appreciation. Equity inflows were concentrated in large-cap growth, while fixed income investors favored intermediate-term strategies. Access the latest ETF trends and insights to help you with client’s portfolios. Exchange Traded Logo AI MAY POWER ELECTRICITY ETF TO NEW HEIGHTS In this episode of Exchange Traded Fridays, Tim Kramer, founder of CNIC Funds, the issuer of the CNIC ICE U.S. Carbon Neutral Power Futures Index ETF (AMPD) discusses the case for investing in electricity with etf.com Senior Analyst Sumit Roy and etf.com Wealth Management Editor Jeff Benjamin. Subscribe on Apple podcasts Spotify Podcasts Listen Now Leaders Banner MORE EXCHANGE The Pros and Cons of Political ETFs Noah Damsky of Marina Wealth Advisors says politics can get investors engaged, but the investments make no sense. Read More What Is a Healthcare ETF? Everything You Need to Know Healthcare ETFs offer investors a combination of reasonable valuations and defensive qualities in 2024. Read More AllianzIM Uncapped Buffered ETFs Reimagine Risk Management. Read More* June CPI May Embolden Fed to Cut Soon Another benign inflation reading is expected. Read More Leaders: Top Advisors & Firms The Leaders list will showcase the nation's Top 100 Financial Advisors and Top 50 RIA Firms, selected through a comprehensive application process. Apply Now Need help building your ETF portfolio? Check out our new Model Portfolios feature in Portfolio Builder, which allows you to choose a model portfolio with prefilled weights and tickers based on a variety of risk appetites. Try Now for Free *Sponsored Content TALK ETFS VIDEO With short-term interest rates above 5%, demand for money market funds and ultra-short-term bond ETFs has been surging. Angel Oak Capital Advisors has capitalized on that demand with its UltraShort Income ETF (UYLD), a fund with gains of 7.4% over the past year versus 5.3% for the SPDR Bloomberg 1-3 Month T-Bill ETF (BIL). How does UYLD do it? In this Episode of Talk ETFs, etf.com Senior Analyst Sumit Roy speaks with Ward Bortz, ETF portfolio manager at Angel Oak Capital Advisors. Watch Now  LinkedIn Icon  X Icon  Instagram Icon  Facebook Icon  YouTube Icon Advertise With Us Want more ETF news delivered straight to you?  Register for free at etf.com for unlimited access to news and trusted data, and gain expert analysis from our other exclusive subscriber-only newsletters. You received this message because you are subscribed to etf.com’s Morning Exchange newsletter. If a friend forwarded you this message, sign up here. Sent by etf.com, 575 5th Ave, 14th Floor, New York, N.Y. 10017  
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