a new low cost stock etf for 2016

Post on 18-Feb-2017

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Welcome to ETF Trading Research Your premier site to instantly diversify your

portfolio to make more money! Want More Research and Strategies on ETFs visit our

website ETFtradingresearch.com

I went shopping at Costco $COST the day after Halloween. As soon as I walk

through the door I was met by the friendly greeter checking to make sure everyone had their membership cards.

It’s the time of year that many investors reevaluate and make changes to their

investment portfolio. If you’re looking for the cheapest way to own US stock then

you need to be looking at ETFs.

An ETF with broad US stock exposure is a core holding for many investors.

Owning an ETF with the lowest expense ratio is a good way to make sure more of

your profits end up in your pocket.

And you can trade it commission free if you have an account with Schwab

$SCHW. Many investors have gravitated to the low cost ETFs at Schwab. So far this year, SCHB has net inflows of $820

million.

And it has seen assets soar by $2 billion since the beginning of 2014. Not

surprisingly, a price war has broken out among ETF providers that are competing on price. We’ve seen the cost of ETFs fall

year after year.

BlackRock recently slashed the cost of several of their “iShares Core” ETFs. The

expense ratio of the iShares Core S&P Total Stock Market ETF $ITOT was

slashed to just 0.03%.

ITOT holds 1,500 US stock. It’s a combination of the S&P 500, S&P 400, and S&P 600 indices. That covers the

most popular large-, mid-, and small-cap US stocks. Since the beginning of 2014 ITOT has grown assets by $1.5 billion.

But it has lagged behind the inflows of Schwab’s low cost ETF. Blackrock is

clearly looking to grab an even bigger piece of the ETF asset pie with this move

to lower expenses on ITOT and other ETFs.

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