Here Come the Zero-Fee ETFs
The race to the bottom for fund fees has finally hit, well, bottom. Two exchange-traded funds that launched at the beginning of April charge 0% in expense ratios--at least for the first 14 months. Another ETF, awaiting Securities and Exchange Commission review, could initially cost less than zero.
The just-launched free) focuses on growing, large-company U.S. stocks; SoFi Next 500 () homes in on shares of midsize and smaller U.S. firms. CFRA analyst Todd Rosenbluth thinks the funds will remain free for more than one year. "Either the funds will be successful and the 0% fee will be extended, or they won't and the products will shut down," he says.
