logo  
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

A Closer Look at ETF Issuers

By  +Follow February 3, 2014 6:00AM
Share:
Tickers Mentioned:

Once an investor is familiar with what an exchanged-traded fund (ETF) is, why they should consider investing in them, and some of the alternative ETF types at their disposal, it’s time to dig into the people at the source: ETF issuers.

Not All ETFs Are Made the Same

Just how much the variations between different issuers really matters is up for debate. Most ETFs are tacked to a specific index, and picking an ETF that suits your portfolio is usually more a consideration of which index rather than which issuer. In many cases, there’s only one issuer with an ETF tracking a particular index. And when there’s multiple issuers with ETFs tracking the same index, the differences in performance are going to be pretty minimal as the intent is to closely match that index. This is different than mutual funds, where fund performance can vary widely depending on the company and manager involved.

However, that doesn’t mean that there’s no reason to know the player involved in the ETF industry. Take, for instance, the most popular ETF, the SPDR S&P 500 Index ETF($SPY). A quick look at daily share volume shows that a clear majority of investors and traders looking to make a play based on the S&P 500 are using SPY to do so. However, two other major ETF issuer have their own S&P 500 ETFs, the iShares Core S&P 500 ETF ($IVV) and the Vanguard S&P 500 ETF (VOO) . And while extremely similar, each one has its own quirks.

Same Index, Different Results

For starters, getting performance that precisely matches the target index involves its own magic. For instance, on January 30, 2014, the S&P 500 gained 19.99 points, which comes out to a jump of 1.13 percent. On that same day, the SPY gained 1.10 percent, the IVV 1.11 percent, and the VOO 1.12 percent. Granted, hundredths of a percentage point probably won’t matter to many investors, but it’s still worth noting that, between the index and the three ETFs, there were four different returns.

And the differences don’t stop there. While most investors probably won’t care one way or the other if their ETF returns a hundredth of a percentage point less than another on any given day, the difference in expense ratio is harder to ignore. The SPY has an expense ratio of just 0.09 percent, which is 0.02 higher than IVV’s 0.07 percent, which itself is 0.02 percent higher than VOO’s 0.05 percent expense ratio.

And finally, there’s even a different in the dividends offered, with SPY featuring a 1.87 percent yield, IVV a 1.85 percent yield, and VOO a 1.89 percent yield.

So, when shopping for ETFs, issuer may not seem like nearly as big a concern as the index being tracked, but there’s still clear reasons to consider the company’s issuing these assets. Because if you’re planning on putting a significant chunk of your retirement savings into one of these ETFs, those fractions of a percent can really add up over time.

List of ETF Issuers

With so many different companies issuing ETFs, it can get a little dizzying trying to keep track of them all. Once again, often times finding the right ETF for your portfolio most likely has more to do with the index involved than the issuer, but that doesn’t mean that these different companies operate with varying philosophies and results that warrant further research.

Below is a look at the 10 of the most-prominent players in the ETF industry:

State Street Global Advisors

Parent Company: State Street Corporation (STT)

Total US-Listed ETFs: 128

Average Expense Ratio: 0.37 percent

Expense Ratio Range: 0.09-0.9 percent

State Street issues the popular SPDR funds, which are among the most visible on the market. Aside from issuing their select sector ETFs for each of the sectors in the S&P 500, the Boston-based company manages is the second-largest asset manager in the world, managing over $2 trillion in assets.

iShares

Parent Company: Blackrock Financial (BLK)

Total US-Listed ETFs: 298

Average Expense Ratio: 0.4 percent

Expense Ratio Range: 0.07-0.89 percent

Formerly known as WEBS (World Equity Benchmark Shares), iShares ETFs are also among the most-traded in the world and include the popular MSCI Emerging Markets Index ETF (EEM) . The company was initially developed in 1993 as part of a partnership between Morgan Stanley (MS) and Barclays (BCS) , but Barclays sold the division to Blackrock in 2009.

Market Vectors

Parent Company: Van Eck Global

Total US-Listed ETFs: 62

Average Expense Ratio: 0.55 percent

Expense Ratio Range: 0.19-1.67 percent

The Market Vectors brand was launched by Van Ecks Associates Corporation in 2006 and includes the Gold Miners ETF($GDX). Van Ecks, a private firm founded in 1955, proved to be a trailblazer in the field of international investing.

Vanguard

Parent Company: Vanguard Group

Total US-Listed ETFs: 67

Average Expense Ratio: 0.15 percent

Expense Ratio Range: 0.05-0.35 percent

Featuring consistently-low expense ratios, Vanguard is the third-largest ETF issuer with over $335 billion in ETF assets under its control. Vanguard is actually a pioneer in the field of passive fund management, with founder John C. Bogle creating the first index fund available to individual investors.

WisdomTree

Parent Company: WisdomTree Investments ($WETF)

Total US-Listed ETFs: 61

Average Expense Ratio: 0.51 percent

Expense Ratio Range: 0.23-0.95 percent

Since launching its first ETF in 2006, WisdomTree has risen the ranks to become the fifth-largest issuer of ETFs in the United States. WisdomTree’s most popular offering is the Japan Hedged Equity Fund ($DXJ), which tracks Japanese equities while hedging for currency risks.

PowerShares

Parent Company: Invesco (IVZ)

Total US-Listed ETFs: 164

Average Expense Ratio: 0.56 percent

Expense Ratio Range: 0.2-1.01 percent

Invesco’s PowerShares was founded in 2002 and creates ETFs that track quantitative indices. Its most-traded offering is the cryptically-titled PowerShares QQQ ($QQQ) which tracks the Nasdaq-100 Index.

Global X

Parent Company: N/A

Total US-Listed ETFs: 38

Average Expense Ratio: 0.64 percent

Expense Ratio Range: 0.45-0.78 percent

Global X Funds is a stand-alone, privately-owned company issuing ETFs. One of the industry’s smaller players, Global has nonetheless made its mark by jumping into the social media industry with its Social Media Index ETF ($SOCL).

Guggenheim

Parent Company: N/A

Total US-Listed ETFs: 71

Average Expense Ratio: 0.45 percent

Expense Ratio Range: 0.2-0.75 percent

Guggenheim Partners, the investment group most recently noted for its purchase of the Los Angeles Dodgers, purchased Claymore Securities in 2009 and rebranded its ETF offerings under the Guggenheim name. Guggenheim’s Solar ETF ($TAN) was the top-performing non-leveraged ETF of 2013.

Direxion

Parent Company: N/A

Total US-Listed ETFs: 54

Average Expense Ratio: 0.91 percent

Expense Ratio Range: 0.35-1 percent

Direxion’s offerings feature a clear theme: leverage. Specializing in alternative ETFs, many of Direxion’s most-traded offerings feature returns at three times the daily movement of their target index.

ProShares

Parent Company: N/A

Total US-Listed ETFs: 143

Average Expense Ratio: 0.91 percent

Expense Ratio Range: 0-0.95 percent

Billing itself as “The Alternative ETF Company,” ProShares is in the business of creating inverse, leveraged, and combination inverse and leveraged ETFs for a wide variety of indices.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


Liked What You Read? Join Equities.com and Connect With Your Favorite Financial Experts FOR FREE! Members of Equities.com gain access to our leading financial news and content, active social investment community, proprietary research tools including the 2014 Small-Cap Stars, E.V.A. reports and more.

Results for SPY
InvestorsHeadquarter
26 Dec 14 16:52:49
$SPY Jan 17th 210 Calls Should Be in The Money Before / By Expiration ... No Worries Here !
latt
26 Dec 14 16:45:26
BEST REAL TIME TRADE ALERTS HERE >>>http://t.co/yh2xEVdvJ1 … $FB $AAPL $TWTR $JOB $BABA $SPY $PVCT $STUDY
AppleDistilled
26 Dec 14 16:45:00
RT @StockTwits: We've been building a huge list of 2015 stock market predictions. This blog post shows all of them http://t.co/yKKMoSKItm $…
howardlindzon
26 Dec 14 16:43:46
RT @StockTwits: We've been building a huge list of 2015 stock market predictions. This blog post shows all of them http://t.co/yKKMoSKItm $…
Option Millionaires
26 Dec 14 16:43:21
Webinar: Top 5 Stocks/Themes for 2015: http://t.co/bMaAjoUasb $CBRL $ISRG $SCTY $SPY $SPX
TradeTexasBig
26 Dec 14 16:41:57
$spy rising wedge with inverted hammer on close .. Check
beamin1
26 Dec 14 16:38:44
@DTrumpWeedEater @Canadasbesthope Yeah same here, $GILD $SPY $TASR killing it - Not a bad flip on $GPRO for small accounts either!
Carolyn B Miciano
26 Dec 14 16:35:45
Powerful #daytrading system revealed http://t.co/V8hSUrgbcS $SPY $QQQ $IWM
Mr Bean Laden
26 Dec 14 16:35:01
RT @MarketCrash2015: The Stock Market is overvalued by 100% #stocks #stockmarket $VVIX $UVXY $VIX $DIA $QQQ $SPY $SPX
Alder Cove Capital
26 Dec 14 16:34:51
Stay tuned for the ACC 2015 Market Forecast and S&P 500 Price Target. You won't want to miss these valuable insights. $SPY $STUDY
Eric
26 Dec 14 16:33:12
RT @GEQSense: I remember peeps were making fun of me when i bot them $207 $SPY calls weeks ago. Who’s laughin now biiiatch?
Jodi Lessmann
26 Dec 14 16:33:09
Recap of today’s #market activity, key #news after the close http://t.co/ohXRqrge8Y $SPY $DJIA $QQQ #earnings #stocks #economy
Gavin Martinsson
26 Dec 14 16:32:01
I remember peeps were making fun of me when i bot them $207 $SPY calls weeks ago. Who’s laughin now biiiatch?
Gavin Martinsson
26 Dec 14 16:31:32
BTW, my $SPY $207 JAn15 Calls that I bought 3 weeks ago are just in a fantastic spot now.. Boo yahh.
Adam Sarhan
26 Dec 14 16:30:53
Nasdaq Comp +15.1% YTD $COMP S&P500 +13.0% YTD $SPX $SPY DowJones Industrials +8.9% YTD $DIA Russell 2k +4.4% YTD $RUT $IWM
山野若葉
26 Dec 14 16:28:00
RT @andrewnyquist: New Post - "S&P 500 Technical Update Price Targets Into The New Year" http://t.co/Ap1ZmGpwEv via @seeitmarket $SPY $SPX …
Abiola
26 Dec 14 16:27:59
RT @philstockworld: Happy Boxing Day - Everything is AWESOME! $SPY $IWM $USO $AAPL $BHI -- http://t.co/504P5REuR4 http://t.co/VxBkxdUMjI
Stockaholics
26 Dec 14 16:27:19
With Penny Stock Picks On $STTK & $RGMI, subscribers saw 671% Gains In One Month! Big Update: http://t.co/vpyNZKGU9u $LEN $SPM $SPY
EscueladeTrading
26 Dec 14 16:25:21
RT @StockTwits: We've been building a huge list of 2015 stock market predictions. This blog post shows all of them http://t.co/yKKMoSKItm $…
Die rote Pille
26 Dec 14 16:25:05
Chart: US stocks richly priced, Fed to tighten low oil price impacts mixed = be cautious on US $SPY http://t.co/LH68L4NZSV
SEO para Novatos
26 Dec 14 16:22:07
RT @StockTwits: We've been building a huge list of 2015 stock market predictions. This blog post shows all of them http://t.co/yKKMoSKItm $…
Stefan Cheplick
26 Dec 14 16:17:59
RT @StockTwits: We've been building a huge list of 2015 stock market predictions. This blog post shows all of them http://t.co/yKKMoSKItm $…
Gene Hobbs
26 Dec 14 16:17:25
RT @alphatrends: VIDEO http://t.co/TScOJiVmAD Stock Mkt Analysis for Wk Ending 12/26/14 $SPY $QQQ $IW $XLF $SMH $AAPL $ADBE $GOOGL $DATA etc
George Pearkes
26 Dec 14 16:17:11
@AbiolaHP but hey short $spy and buy $tlt here if you're so inclined!
Sven
26 Dec 14 16:12:49
RT @StateDave: Oil gives up gains.... Stocks start to sink. It's that simple right now... $USO, $SPY
Dave Fry
26 Dec 14 16:11:37
$SPY $RUT $IGV $XRT $VNQ ETF Digest Dave's Daily: Bulls Are Buying What Yellen Is Selling http://t.co/xExvNy5242
DailyStockPicks
26 Dec 14 16:11:29
$ECIG spiked 22% and closed at HOD. 5x gain potential $SPY $QQQ $DIA http://t.co/xi3978GuDs http://t.co/6LLPqPrIvS http://t.co/PHLBBT3hb5
Scott Smith
26 Dec 14 16:10:44
$IWM Just over a week later and look how far we've come (Detailed chart posted Dec. 17th) http://t.co/7zYFT5owjM $QQQ $DIA $SPY $XLF $STUDY
StockMarket CRASH
26 Dec 14 16:10:22
The Stock Market is overvalued by 100% #stocks #stockmarket $VVIX $UVXY $VIX $DIA $QQQ $SPY $SPX
Wael Ahmed
26 Dec 14 16:08:57
RT @philstockworld: Major Oil Price #Manipulation Ready for January! $USO $CL_F $SPY $DIA $QQQ $IWM -- http://t.co/Aztz5qof9K http://t.co/…
Al Sabogal
26 Dec 14 16:08:56
@NYDOUGH you can look at my spreadsheet...currently have plays on ~5 etf's but the $SPY / $SPX trades are massive compared to others
México Negocios
26 Dec 14 16:07:38
RT @StockTwits: We've been building a huge list of 2015 stock market predictions. This blog post shows all of them http://t.co/yKKMoSKItm $…
Richard Hargrave
26 Dec 14 16:05:18
WEEKLY WRAP UP, $NYSI, $IWM, $SPY, $GLD, $GDX, $QQQ, $RSX, $FXI, $NEM, $IYT, $TLT, $XLU, $ETC $ETC $ETC. http://t.co/UH2rAMp4XD
yo soy seo
26 Dec 14 16:04:01
RT @StockTwits: We've been building a huge list of 2015 stock market predictions. This blog post shows all of them http://t.co/yKKMoSKItm $…
TheStreetOptions
26 Dec 14 16:02:08
The Pros and Cons of ETFs - $spy http://t.co/21XdnI92lq
RF Global Macro
26 Dec 14 16:01:50
RT @nanexllc: What the stock market did in the last 5 early December closings $ES_F $SPY http://t.co/87XDsSJRAf
Aman19380@gmail.com
26 Dec 14 15:59:37
Mens Guide for Women in the Workplace CNBC http://t.co/5qohGUF8PM #news $$ $spy
Sideways
26 Dec 14 15:58:40
RT @sanglucci: $SPY tighter ranges man... Gonna get sentiment remainin bullish but intraday price action will get a lot tougher
BolsaNews
26 Dec 14 15:57:34
RT @StockTwits: We've been building a huge list of 2015 stock market predictions. This blog post shows all of them http://t.co/yKKMoSKItm $…
BallsyStocks
26 Dec 14 15:57:28
New Edition to Bulls vs Bears: Amazon http://t.co/pPCTdOvAe7 … $AMZN $FITX $FB $BABA $TWTR $SPY $S $CMG #chipolte $GLD $MDR $CNET $MCIG #US
Cal
26 Dec 14 15:56:48
RT @seeitmarket: New Post - "ETF Investing: A Look At Where To Invest In 2015" http://t.co/WcxCULi6B3 by @ThetaTrend | $SPY $TLT $IYR
BallsyStocks
26 Dec 14 15:55:55
How the decline in oil prices will benefit stocks http://t.co/PAenu39uWB … $FL $FINL $FB $SBUX $AMZN $MINE $TWTR #Disney #2A $FNMA $SPY $SPY
Fractal Long
26 Dec 14 15:54:22
What is the $SPY going to do next? Get real time alerts and analysis at http://t.co/FdgO81MjFp
Timothy Michael
26 Dec 14 15:48:13
RT @StockTwits: We've been building a huge list of 2015 stock market predictions. This blog post shows all of them http://t.co/yKKMoSKItm $…
Inside Stock Alerts
26 Dec 14 15:45:38
U.S. retailers miss fewer Christmas deadlines: early surveys: SAN FRANCISCO (Reuters) - Major U... http://t.co/7wIxja32Uk $SPY $QQQ $IWM
Options Trader
26 Dec 14 15:45:38
U.S. retailers miss fewer Christmas deadlines: early surveys: SAN FRANCISCO (Reuters) - Major U... http://t.co/E390gUZAEh $SPY $QQQ $IWM
Carolyn B Miciano
26 Dec 14 15:41:38
Free course on Put Call parity http://t.co/cx5X9R3ZkV $SPY $QQQ $IWM
Abuelo del Ibex 35
26 Dec 14 15:41:27
RT @StockTwits: We've been building a huge list of 2015 stock market predictions. This blog post shows all of them http://t.co/yKKMoSKItm $…
Victor
26 Dec 14 15:33:56
RT @StateDave: "No soup for you"... Transports slammed into the close. Algos hit SPX in final minutes for third straight day. $SPY
Brandt Hackney
26 Dec 14 15:31:58
All HY Credit acting as leading indicator vs $SPX Where credit goes stocks will follow $QQQ $SPY $IWM $DIA http://t.co/HN0caWz3xU
				
				
By  +Follow February 3, 2014 6:00AM
Share:

Comments

 

blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.