World's cheapest ETF portfolio just got cheaper

|By:, SA News Editor

ETF.com's Matt Hougan last updated his World's Cheapest ETF Portfolio in November 2015, and at the time was hoping for someone to launch a commodity fund priced at 0.25%.

He about got his wish last week when ETF Securities launched a trio of such ETFs, with two priced at just 0.29%. For his World's Cheapest portfolio, he's choosing the ETFS Bloomberg All Commodity Longer Dated Strategy K-1 Free ETF (BCD), while noting one needs to be careful with new, thinly-traded funds.

The new blended expense ratio for the portfolio is now just 0.06%, down two basis points from 2015, and just 50% of what it was in 2008.

Portfolio funds: iShares Core S&P Total U.S. Market ETF (NYSEARCA:ITOT) - 40% weighting; Schwab International Equity ETF (NYSEARCA:SCHF) - 30% weighting; Schwab Emerging Markets Equity (NYSEARCA:SCHE) - 5% weighting; Schwab U.S. Aggregate Bond (NYSEARCA:SCHZ) - 15% weighting; Schwab U.S. REIT ETF (NYSEARCA:SCHH) - 5% weighting; and the above commodity fund at 5% weighting.