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ETF Assets moves towards cheaper funds Thumbnail

ETF Assets moves towards cheaper funds



ETF data provided by Bloomberg points to the fact that 60% of the assets inside the $7T U.S. ETF market fall inside funds that have expense ratios under 0.10%. Over 75% of ETF assets find themselves in funds with expense ratios below 0.20%.

Traditionally actively managed thematic exchange traded funds typically find themselves generating expense ratios of 0.50% - 0.99%. With that being noted, the chart below shows that the overwhelming majority of ETF assets appear to be geared towards lower passively managed ETFs.

The SPDR S&P 500Trust ETF (NYSEARCA:SPY) is the world's largest ETF with $397.15B assets under management, and an expense ratio of 0.94%, which represents a sliver of the 58% bucket. Stocks held onto strong gains at the close of Tuesday's trading, pushing the S&P 500 back above its 200-day moving average.