FYI: Once upon a time, former ETF.com CEO Matt Hougan wrote a regular feature for the site called “World’s Cheapest ETF Portfolio,” in which he constructed a broadly diversified portfolio using the least expensive ETFs in each of six asset classes. In 2017, Hougan reported the cost of his theoretical portfolio to be at 0.05%.
His portfolio wasn’t so much an investable model as it was a metric: a quick-and-dirty gauge of how the fee wars were impacting the industry.
What he found is that, despite the ongoing fee wars, some areas of the market still tend to be more expensive than others. That goes double for “socially responsible,” or environmental, social and governance (ESG) investments, which can be significantly costlier than their vanilla counterparts.
Regards,
Ted
https://www.etf.com/publications/etfr/cheapest-esg-etf-portfolio?nopaging=1
