Select Sector SPDRs, a range of exchange-traded funds (ETFs) which segment the S&P 500 into nine sec...
Select Sector SPDRs, a range of exchange-traded funds (ETFs) which segment the S&P 500 into nine sector funds, has lowered the average expense ratio for its ETFs from 0.23% to 0.21%.
Director of wealth management strategies Dan Dolan said: "When we launched these funds more than 10 years ago, our expense ratio was 0.65%.
"Our board and the management of the Select Sector SPDR Trust made a commitment to move expenses lower as assets grew."
Dolan added that the lowering of expense ratios is of particular interest to institutional clients who buy large amounts of ETFs.
He added that other players have increased their expense ratio as a reflection of the marketplace, because although inflows into ETFs have been positive through last year, the asset value of portfolios has generally declined.
"In the sector space of ETFs, we are the clear leader - we accrued $23bn in assets at the year end in 2008," said Dolan.
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