Small-Cap Value For A Nominal Fee
April 21, 2017 - 9:23am
Low fees on exchange-traded funds are one of the biggest selling points of this asset class and one of the primary reasons investors are continually ditching higher-fee, under-performing actively managed mutual funds.
Lower Fees Attract Assets
Even better for investors is that ETF issuers are consistently lowering fees in an effort to attract more assets. Vanguard, the second-largest U.S. ETF sponsor, is one of the low-cost leaders and a frequent participant in the ETF fee war. Lower fees on ETFs, including Vanguard products, has made its way to small-cap funds.
Case In Point: VBR
Just look at the Vanguard Small-Cap Value ETF (NYSE: VBR). VBR charges a scant 0.08 percent per year, or $8 on a $10,000 stake. That makes VBR cheaper than 94 percent of competing funds, according to Vanguard data.
VBR “targets ...Full story available on Benzinga.com
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