The Dynamics of ETF Fees

Travis Box, Ryan Davis & Kathleen Fuller (2020) The Dynamics of ETF Fees, Financial Analysts Journal, 76: 1, 11-18

17 Pages Posted: 10 Feb 2019 Last revised: 27 Jan 2020

See all articles by Travis Box

Travis Box

Clemson University

Ryan Davis

University of Alabama at Birmingham

Kathleen P. Fuller

University of Mississippi - School of Business Administration

Date Written: November 1, 2019

Abstract

Despite widely publicized fee reductions, we find that average ETF expense ratios have remained relatively steady during the last 15 years. Even though thousands of new funds have entered the market, the arrival of most ETF sponsors into a narrowly defined area does not generally lead to lower fees for competing funds. Given the impact of fees on long-term investment returns, investors should examine all of the available opportunities before choosing specific funds. Furthermore, as objectives for newer ETFs become increasingly specialized, investors must also carefully consider whether the benefits of targeted strategies justify their higher prices.

Keywords: ETFs, Fund Sponsors, Management Fees, Expense Ratios

Suggested Citation

Box, Travis and Davis, Ryan and Petrie Fuller, Kathleen, The Dynamics of ETF Fees (November 1, 2019). Travis Box, Ryan Davis & Kathleen Fuller (2020) The Dynamics of ETF Fees, Financial Analysts Journal, 76: 1, 11-18, Available at SSRN: https://ssrn.com/abstract=3325927 or http://dx.doi.org/10.2139/ssrn.3325927

Travis Box (Contact Author)

Clemson University ( email )

101 Sikes Ave
Clemson, SC 29634
United States

Ryan Davis

University of Alabama at Birmingham ( email )

Birmingham, AL 35294
United States

Kathleen Petrie Fuller

University of Mississippi - School of Business Administration ( email )

PO Box 3986
Oxford, MS 38677
United States

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