Exchange-traded funds rolled out in 2011 are twice more expensive than their existing peers, Financial News reports. The average total expense ratio for the 179 new ETFs is 67 basis points, while it is 32 bps for existing funds in the U.S. and 37 bps in Europe.
The higher pricing indicates that the more recent offerings have been in emerging market, commodity and other harder-to-access markets, said Axel Lomholt, head of product development for iShares in Europe. Morningstar research showed that ETFs managed by Vanguard are on average 60% less expensive than iShares.
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