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February 03, 2015 at 07:41 AM
State Street Global Advisors (STT) said early Tuesday that it cut management fees on 41 SPDR exchange-traded funds (ETFs) across a range of asset classes, a sign of the stiff competition in today’s marketplace.
“Our primary focus is on helping investors build stronger portfolios while positioning SPDR ETFs for long-term growth,” said James Ross, executive vice president and global head of SPDR ETFs, in a statement. “Investors should look beyond a fund’s expense ratio to fully understand its total cost of ownership.”
The move may be prompted in party by recent ETF.com data showing that Vanguard replaced SSgA as the No. 2 ETF provider as of Jan. 20. The website says Vanguard had $432.65 billion in ETF assets, or a roughly 21.8% market share vs. State Street’s $431.8 billion, or 21.7%. (Market leader BlackRock (BLK) had some $756.42 billion, or 38.1%.)
The S&P Barclays Aggregate Bond ETF (LAG), for instance, will see its fee ratio drop from 0.21% to 0.10%, while fees on the S&P Barclays International Corporate Bond ETF (IBND) will decline from 0.55% TO 0.50%. The SPDR S&P 500 Growth ETF’s (SPGY) fee ratio is declining to 0.20% TO 0.15%.
