‘ Price Bailey ’

Cost of equity ETFs slow to reduce

Jun 7th, 2016 | By
James King, Head of Private Client, Partner, Price Bailey

In the wake of the so-called ETF price war, the actual cost of ETFs has not reduced as much as some investors would have hoped, with prices only reducing by 0.03% in the last ten years. According to new data from Morningstar, the asset-weighted average total expense ratio of an equity ETF in the UK has only declined by 0.03% in the past decade to 0.32%. In the same time period the number of ETFs has risen from 119 to more than 550. James King, head of the private client department at wealth firm Price Bailey, said “The ongoing charge figure isn’t everything, but with vanilla type products it is pretty important.”