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The More The Scarier? ETF Proliferation Bad For Trading Health, Study Finds

FYI: Expense ratios – what investors explicitly pay fund managers to oversee their stocks and bonds – have generally fallen across the board in the realm of exchange-traded funds.

And investors have by and large flocked-to ETFs with the lowest expense ratios, with increased competition among big asset managers resulting in tit-for-tat fee cuts on many large ETFs. Morningstar research finds that investors are paying less for fund management mostly because they’re voting with their dollars.

However, investors should consider other costs of holding ETFs, too. Tax efficiency and trading costs influence the total cost of ETF ownership, too, though both of these are difficult for most investors to measure at the time of purchase.
Regards,
Ted
http://blogs.barrons.com/focusonfunds/2016/08/10/the-more-the-scarier-etf-proliferation-bad-for-trading-health-study-findsthe-more-the-scarrier-etf-proliferation-bad-for-trading-health/tab/print/
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