1,210 views|Apr 25, 2020,08:24pm EDT
Investors Shift To Vanguard Low Fee ETFs VOO and VTI Over SPY
Q.ai - Investing ReimaginedContributor
Money
Q.ai uses advanced quantitative techniques and artificial intelligence to generate investment recommendations.
Vanguard low fee S&P 500 and Broad market ETFs[+]
GETTY
More From Forbes
More Coronavirus Relief Bills Could Be On The Way
Lawmakers anticipate more economic relief for businesses and individuals could be on the way as the COVID-19 pandemic continues.
Current Time 0:06
/
Duration 1:08
Loaded: 58.32%
x
Most major indices have experienced a sharp rebound since the bottom on March 23, 2020, with the S&P 500 firmly back in a bull market, up 26.8% since that date to April 24, 2020. One way to get a handle on how investors are feeling is looking at how the biggest ETFss by AUM are doing in the last few months.
The bellwether SPDR S&P 500 ETF Trust (SPY), with an AUM of $255.7 billion, has seen some redemptions in the last 90 days. It is down about $18.2 billion in that time-frame.
While you might want to think it is investors taking risk off of the table, it is more likely a switch to lower-fee funds in the iShares Core S&P 500 ETF (IVV), the Vanguard S&P 500 ETF (VOO), and the Vanguard Total Stock Market ETF (VTI). Those three have had inflows of $3.3 billion, $16.1 billion, and $7.7 billion respectively.
Given that the SPY has a Net Expense Ratio (NER) of 0.094% versus 0.4% for IVV, and 0.3% for both VOO and VTI, that could be investors doing some creative tax planning sales combined with moving to a cheaper investment in the last 90 days.
Source:https://www.forbes.com/sites/qai/20...fees-etfs-voo-and-vti--over-spy/#388233d63b1c
Investors Shift To Vanguard Low Fee ETFs VOO and VTI Over SPY
Q.ai - Investing ReimaginedContributor
Money
Q.ai uses advanced quantitative techniques and artificial intelligence to generate investment recommendations.
Vanguard low fee S&P 500 and Broad market ETFs[+]
GETTY
More From Forbes
More Coronavirus Relief Bills Could Be On The Way
Lawmakers anticipate more economic relief for businesses and individuals could be on the way as the COVID-19 pandemic continues.
Current Time 0:06
/
Duration 1:08
Loaded: 58.32%
x
Most major indices have experienced a sharp rebound since the bottom on March 23, 2020, with the S&P 500 firmly back in a bull market, up 26.8% since that date to April 24, 2020. One way to get a handle on how investors are feeling is looking at how the biggest ETFss by AUM are doing in the last few months.
The bellwether SPDR S&P 500 ETF Trust (SPY), with an AUM of $255.7 billion, has seen some redemptions in the last 90 days. It is down about $18.2 billion in that time-frame.
While you might want to think it is investors taking risk off of the table, it is more likely a switch to lower-fee funds in the iShares Core S&P 500 ETF (IVV), the Vanguard S&P 500 ETF (VOO), and the Vanguard Total Stock Market ETF (VTI). Those three have had inflows of $3.3 billion, $16.1 billion, and $7.7 billion respectively.
Given that the SPY has a Net Expense Ratio (NER) of 0.094% versus 0.4% for IVV, and 0.3% for both VOO and VTI, that could be investors doing some creative tax planning sales combined with moving to a cheaper investment in the last 90 days.
Source:https://www.forbes.com/sites/qai/20...fees-etfs-voo-and-vti--over-spy/#388233d63b1c
