There have been celebrations after a re-pricing in the market for Australian shares exchange-traded funds. But experts warn headline rates aren’t the only consideration.
P/ASX 200 ETF , which tracks the performance of the largest 200 companies on the local sharemarket.Louie Douvis
“Fees are like termites, nibbling at investors’ returns each day, so the more ETF issuers can exterminate these termites the better it is for more investors.” Responding to the Betashares announcement, Jason Collins, head of BlackRock’s iShares ETF business in Australia, said the firm was “pleased to be the catalyst” for the downward pressure on fees in the market.
But Jocum says regardless of the nuances, both indices have “near identical return and risk characteristics”. And that really is the most important thing for investors, meaning the products are a fair comparison.The whole episode has put a spotlight on fees, which Jocum says is positive. But he also says it is critical to put headline fee cuts in perspective.
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