The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Bloomberg Talks of Vanguard's ETF Throwdown  Not Rated 0.0 Email Routing List Email & Route  Print Print
Friday, October 15, 2010

Bloomberg Talks of Vanguard's ETF Throwdown

News summary by MFWire's editors

Vanguard's [see profile], ETF pricing cuts gained more coverage, this time in a Bloomberg report.

The MFWire previously reported on Vanguard's .

Vanguard’s U.S. ETFs reportedly gained $25.6 billion this year through Sept. 30, 26 percent more than BlackRock's iShares [see profile] and State Street [see profile] combined, according to data from Morningstar. Vanguard last month offered 20 new ETFs with funds that track Standard & Poor’s and Russell indexes, including the S&P 500 Index.

By comparison, State Street and BlackRock dropped to a 70 percent combined share from 85 percent in 2005, as investors reportedly wamed to Vanguard's lower-fee funds, as well as those offered by Charles Schwab Corp. [see profile] and Pacific Investment Management Co. [see profile].

BlackRock's and State Street's fees are on average reportedly double those of Vanguard's and Schwab's. Specifically, the BlackRock iShares ETF that tracks the MSCI Emerging Markets Index reportedly has an expense ratio of 72 basis points while the Vanguard ETF that follows the same benchmark has an expense ratio of 27 bps.

However, both ETF giants are parrying Vanguard's blows with old-school tactics.

iShares managing director Noel Archard said in an interview that his firm is "absolutely" sticking to its strategy. “Our customers aren’t asking for lower expense ratios. They’re asking for more services.”

Tony Rochte, a senior managing director at State Street’s money-management unit, was quoted as saying that his customers see expense ratios as one of several key factors in assessing whether to invest in a particular ETF. According to Rochte, other factors such as liquidity, tracking error and tax-efficiency also come into play for investors. 

Edited by: Hung Tran

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2020
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use