Why Cost Matters to ETF Investors

As the ETF industry grows and matures, investors are gravitating toward specific areas of interest and targeted investment strategies.

“I think what we are already seeing – costs matter. We continue to see that,” Susan Thompson, Head of SPDR Americans Distribution for State Street Global Investors, said at Inside ETFs.

For example, State Street Global Advisors has a line of dirt-cheap ETFs to provide exposure to a range of core equity and fixed-income asset classes, including:

SPDR Portfolio Total Stock Market ETF (SPTM A) 0.03% expense ratio
SPDR Portfolio Large Cap ETF (SPLG A) 0.03% expense ratio
SPDR Portfolio Mid Cap ETF (SPMD A+) 0.05% expense ratio
SPDR Portfolio Small Cap ETF (SPSM A-) 0.05% expense ratio
SPDR Portfolio S&P 500® Growth ETF (SPYG A-) 0.04% expense ratio
SPDR Portfolio S&P 500 Value ETF (SPYV A) 0.04% expense ratio
SPDR Portfolio S&P 500 High Dividend ETF (SPYD B+) 0.07% expense ratio
SPDR Portfolio World ex-US ETF (SPDW A) 0.04% expense ratio
SPDR Portfolio Emerging Markets ETF (SPEM A-) 0.11% expense ratio
SPDR Portfolio Aggregate Bond ETF (SPAB B+) 0.04% expense ratio
SPDR Portfolio Long Term Corporate Bond ETF (SPLB A) 0.07% expense ratio
SPDR Portfolio Intermediate Term Corporate Bond ETF (SPIB A-) 0.07% expense ratio
SPDR Portfolio Short Term Corporate Bond ETF (SPSB A-) 0.07% expense ratio
SPDR Portfolio Long Term Treasury ETF (SPTL A-) 0.06% expense ratio
SPDR Portfolio Short Term Treasury ETF (SPTS A) 0.06% expense ratio

As more investors look to invest, many have become disillusioned with costly active fund strategies, opting to funnel more money into low-cost, passive index-based ETFs.

“I think it is a great time to be an investor,” Noel Archard, Global Head of State Street SPDR ETF Product for State Street Global Advisors, said.

“Investors have to get educated on what is the best fit for their portfolios, but when they find that fund, it is a very low cost, diversified product they can hold and go into anywhere,” he added.

For more ETF-related commentary from Tom Lydon and other industry experts, visit our video category on ETF Trends.