June 12, 2007
SAN DIEGO (ETFguide.com) - Expense ratios for
exchange-traded funds (ETFs) creeped higher during the second quarter to an
industry average of just under one-half percent.
The total number of U.S. listed ETFs crossed 500 during the second
quarter and the bond category has been particularly active with 13 new funds
added to its ranks.
As for total ETF assets, the $500 billion
threshold is close to being reached.
Sector
ETFs jumped from 64 to 156 funds over the past year. The expense
ratio average for this group edged upward from 0.48 percent to 0.52 percent.
New sector funds recently launched include those by First Trust
Advisors and New York-based
XShares Advisors LLC,
which has a series of
niche healthcare funds.
The specialty
group had the highest
average expenses among all ETF categories. The group is dominated by ProShares,
which recently launched 22 ETFs that offer leveraged long and short exposure
to industry sectors such as energy, healthcare, and technology. The funds
are benchmarked to Dow Jones U.S. sectors and have expense ratios of 0.95
percent.
The fixed
income category had the
lowest average expense ratios among all ETF groups of just 0.20 percent.
The number of bond ETFs has significantly increased this year because of new
offerings from Vanguard and State Street Global Advisors.
Merrill Lynch's
HOLDRS were omitted because their cost is not expressed in terms of expense
ratios.
2Q 2007 ETF
Survey
|
ETF
Categories |
Expense Ratio Category Average |
Number of ETFs |
|
Broad Market |
0.39% |
26 |
|
Large Cap |
0.37% |
49 |
|
Mid Cap |
0.35% |
27 |
|
Small Cap |
0.39% |
31 |
|
Industry & Sector |
0.52% |
156 |
|
Global & International |
0.51% |
80 |
|
Emerging Market |
0.63% |
20 |
|
Fixed Income |
0.20% |
27 |
|
Commodity |
0.70% |
17 |
|
Currency |
0.45% |
14 |
|
Specialty |
0.91% |
67 |
|
Industry Totals/Average |
0.49% |
514 |
Source:
ETFguide.com
