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ETF's reducing fees (October 2016)

Discussion in 'Exchange Traded Funds (ETF)' started by mikeyman123, 6th Oct, 2016.

  1. mikeyman123

    mikeyman123 Member

    Joined:
    20th Sep, 2016
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    Location:
    Victoria
    Just noticed that iShares released an announcement today (October 6) regarding management fee reductions:

    iShares S&P 500 (IVV) - 0.07% to 0.04% p.a.
    iShares S&P Mid-Cap (IJH) - 0.12% to 0.07% p.a.
    iShares S&P Small-Cap (IJR) - 0.12% to 0.07% p.a.

    Vanguard did the same thing last week for a few of the local Australian ones.

    Australian Shares Index (VAS) - 0.15% to 0.14%
    Australian Property Securities Index (VAP) - 0.25% to 0.23%
     
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  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    A bit of competition is great ... I just hope it's not a "race to the bottom" and they end up becoming unprofitable / unsustainable.

    I guess their overheads would be very low for operating these funds, so they should have a bit of wriggle room in remaining profitable even if they take an income cut. FUM is undoubtedly growing anyway - and it would cost the same to operate an index-tracking fund no matter what the FUM is.
     
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  3. twisted strategies

    twisted strategies Well-Known Member

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    3rd Nov, 2013
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    QLD
    i can't find the Bloomberg Video , but Blackrock is saying all about grabbing extra market share from proposed regulation changes and only for passive ETFs , like the S&P 500 one