ETFs Adjust Expense Ratios

ETFs from multiple issuers have all made changes to their expense ratios as we kick off 2018.

FactSet reported that a number of funds had made changes to their expense ratios at the turn of the year.

As of Dec. 29, 2017, the iShares MSCI South Korea ETF (EWY) lowered its expense ratio from 0.64% to 0.62%, and the Goldman Sachs ActiveBeta Emerging Markets Equity ETF (GEM) lowered its expense ratio from 0.50% to 0.45%. The Xtrackers FTSE Developed ex U.S. Comprehensive Factor ETF (DEEF) lowered its expense ratio from 0.36% to 0.35%

Vident revised the expense ratios of three of its funds as of Dec. 31. The Vident Core U.S. Bond Strategy ETF (VBND) lowered its expense ratio from 0.48% to 0.43%, while the Vident Core U.S. Equity Fund (VUSE) reduced its expense ratio from 0.55% to 0.50% and the Vident International Equity Fund (VIDI) lowered its expense ratio from 0.68% to 0.61%.

First Trust actually raised the rates on two of its funds, both of which invest in closed-end funds. The expense ratios reflect the costs of the ETFs’ underlying investments. As of Jan. 2, 2018, the First Trust CEF Income Opportunity ETF (FCEF) costs 2.78%, up from 2.50%, while the First Trust Municipal CEF Income Opportunity ETF (MCEF) costs 2.11%, up from 1.91%.  

Contact Heather Bell at [email protected]