Invesco Ltd. launched two new exchange-traded funds Friday with management costs waived until the end of the year, further escalating the ETF industry’s long-running fee war.
The Invesco Nasdaq Biotechnology ETF (IBBQ) and Invesco PHLX Semiconductor ETF (SOXQ) will effectively cost nothing until Dec. 17, after which each will carry an expense ratio of 19 basis points, according to a press release from the firm.
Issuers across the $6.4 trillion ETF industry have been battling to have the lowest cost offerings for years in a bid to capture assets as the total number of funds surpasses 2,400.
Earlier this year, State Street Global Advisors slashed fees on its two of its bond ETFs a day after BlackRock Inc. made a similar move.
Still, a zero expense ratio — even for a limited period of time — is relatively uncommon.