Vanguard’s Emerging Market ETF Surges As Low-Cost Funds Take Charge

Friday, January 21, 2011 07:25
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Vanguard’s Emerging Market ETF Surges As Low-Cost Funds Take Charge

Just a year ago Vanguard’s Emerging Market ETF was half the size of the iShares MSCI Emerging Markets ETF, but in that short time it has surged past iShares MSCI to become the third largest U.S. exchange-traded fund.

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Analysts attribute Vanguard’s stunning success in the ETF market to a price war amid ETF investors, according to Investment News. In the ETF market, Vanguard is using the same low-fee strategy it used to dominate the mutual-fund industry.


Other ETF companies are facing pressure to lower their fees as a result, said Dave Nadig, director of research at Index Universe, a San Francisco-based financial media company.

 

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