By Michael Johnston of ETF Database
The rise of the ETF industry is often attributed -- in large part at least -- to a shift in investor preference from pricey active management to low-cost indexing strategies.
ETFs burst on to the investment scene by offering fees equivalent to only a fraction of those charged by traditional actively managed mutual funds. They have continued to attract assets from investors frustrated with the inability of some actively managed funds to beat their benchmark indices.
But not all ETFs offer bargain-basement expense ratios. As the product offerings have become increasingly specialized and targeted in recent years, average fees have been on the rise.This trend isn't necessarily attributable to issuer greed (the low end of the expense ratio range has expanded as well), but rather to the increasing complexity and granularity of exposure available through ETFs. Replicating the S&P 500 is a relatively simple task, but tracking the performance of more complex strategies or far-flung markets often incurs additional costs. There is now a group of ETFs that has seen expense ratios climb above the 1% mark, venturing into mutual fund territory. Below we examine the five most expensive.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV