Vanguard's recent expense reduction means 9 of its 10 sector ETFs are now the cheapest available...


Vanguard's recent expense reduction means 9 of its 10 sector ETFs are now the cheapest available to U.S. investors. With an annual expense ratio of just 0.14%, VOX, VPU, VCR, VDC, VDE, VHT, VIS, VGT, and VAW stack up favorably vs. the 0.18% charged  by State Street's Sector SPDRs (XLU, XLY, XLP, XLE, XLF, XLV, XLK, XLI, XLB and XTL which charges 0.35%) and the 0.47%-0.48% iShares sector ETFs (RXI, KXI, IYE, IYF, IYZ, IYH, IDU, IYW, IYM, IYJ) charge. At 0.19%, Vanguard Financials (VFH) is still slightly more expensive than the Financial SPDR (XLF).
Comments (2)
  • 102ndreg
    , contributor
    Comments (4) | Send Message
     
    Well.no surprise. Vanguard as long been fund busines lowest expense leader. e.b.h.
    8 Jan 2013, 03:59 PM Reply Like
  • SA Editor Jonathan Liss
    , contributor
    Comments (493) | Send Message
     
    I wonder why their Financials sector fund costs significantly more than their other sector funds? I know they're an at-cost fund provider but it's especially interesting when you consider that the sector SPDRs are all the same 0.18%. Is SSgA taking a loss on XLF? Is their index easier to build/maintain? Curious if anyone knows?
    9 Jan 2013, 04:09 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs