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. To read our full disclosure, please go to: http://www.equities.com/disclaimer


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
Alexander Kurguzkin
2 Sep 15 01:30:08
Bear momentum signal on S&P 500 http://t.co/l91XrpKS1x #stocks #sp500 $SPY $SPX http://t.co/A8e696Uhq6
Gökhan Yu
2 Sep 15 01:29:32
RT @alaidi: #StocksWorldPeace NOT #CurrencyWars as China, US & Japan join hands to buy stocks & save their necks #ESA +1.7% #forex $SPX …
PengeErAlt
2 Sep 15 01:24:09
RT @RyanDetrick: NEW POST: What Does A Big Drop On The First Day Of September Mean? http://t.co/9ZEVyq4ubl via @YahooFinance $SPY $DIA
alpe pinnazzo
2 Sep 15 01:21:38
Why China cant destroy USA? Without US imports China d ve TRADE DEFICIT past 20 years $FXI $SPY $TLT
Alexander H Bastin
2 Sep 15 01:21:20
RT @StockTwits: Traders are seeing this and their jaws are dropping. Chart by @KimbleCharting: http://t.co/eYSJlrGoaU $SPY $SPX http://t.…
BingoChart
2 Sep 15 01:21:16
you can #Sell the "grümpel" $SPY $DAX #ShanghaiComposite and others AGAIN
Paramount Asset
2 Sep 15 01:19:21
$GS, $BAC, $OIL, $JPM, $VLO, $SPY and $AAPL aren't these screaming buy buy at the current levels? @jimcramer
CadeTradeR
2 Sep 15 01:18:18
#US markets slump in late session yesterday, has the rally been exhausted? http://t.co/xTK3o38sXt #Trading $SPY $SPX $DJIA $DIA #ALSI #JSE
Oscar Delta
2 Sep 15 01:15:38
RT @TradePossible: $SPY $FXI $EWJ $EEM Blue Ocean mkts just pulled. These were the mkts 10 mins ago. Now you'll have to wait for NYSE htt…
Gerry O'Donnell
2 Sep 15 01:15:33
RT @TradePossible: $SPY $FXI $EWJ $EEM Blue Ocean mkts just pulled. These were the mkts 10 mins ago. Now you'll have to wait for NYSE htt…
Blue Ocean Ex
2 Sep 15 01:15:27
$SPY $FXI $EWJ $EEM Blue Ocean mkts just pulled. These were the mkts 10 mins ago. Now you'll have to wait for NYSE http://t.co/jy2GzAemKb
moderneconomist.com
2 Sep 15 01:02:49
RT @tymorapro: $SPY: GapUP 2.14[+1.1%,fill:4%], PrvCl:191.77, PrvHi:194.77, PDayGp-, 27:3Accel+, tf:0001111, bigFlt:851M, p$vol:39T; TLM:1.2
Alexander Morris
2 Sep 15 01:00:02
$SPY: GapUP 2.14[+1.1%,fill:4%], PrvCl:191.77, PrvHi:194.77, PDayGp-, 27:3Accel+, tf:0001111, bigFlt:851M, p$vol:39T; TLM:1.2
Alpha Maven Alerts
2 Sep 15 00:53:14
$COP active, relative volume: 7.29, 1H, 3:00 PM, #lse $SPY
ok_trader
2 Sep 15 00:51:57
RT @bespokeinvest Over 90% of S&P 500 stocks are now below their 50-DMA. $SPY
WMtimer
2 Sep 15 00:50:27
My prediction is that it will take the $SPY 3 months from now (concluding with the Santa Claus rally) to complete the massive Bear top.
Dr. Duru
2 Sep 15 00:46:05
%stocks>40DMA=11.9% Sellers Boldly Press Into Now Historic Oversold Period http://t.co/IGtIHgzzjB #T2108 $SPY $NFLX http://t.co/zh9vN3THVV
Bart
2 Sep 15 00:45:53
RT @RyanDetrick: If the first day of Sept is down >2% (like today), the rest of the month drops another 5.33% on avg. $SPY http://t.co/IRO…
Blue Ocean Ex
2 Sep 15 00:45:00
$SPY Current Mkt at 0345hrs eastern time 193.90 x 194.11 15,000 up. #TradePossible http://t.co/6wkLwzJ4Bh
Dr. Duru
2 Sep 15 00:44:53
%stocks>40DMA=12% Stock Market Sellers Press Historic Oversold Period http://t.co/wfglTBwsCm #T2108 $SPY $IBB $NFLX $AAPL $EEM $RUSS #VIX
Fractal Trading
2 Sep 15 00:43:23
Confidently trade $SPY http://t.co/SgkOhHX2Dd
Chuck Stein
2 Sep 15 00:39:29
RT @DowdEdward: $SPY The sooner one realizes we are in a bear market the better off one will be. Don't be afraid. Just don't ride all the w…
Trade Forex Signals
2 Sep 15 00:36:25
My forecast. $SPY http://t.co/YQpyuRg83t ~ via http://t.co/Kd2qwcsyit
Musalam Al-Musalam
2 Sep 15 00:35:36
RT @StockTwits: Traders are seeing this and their jaws are dropping. Chart by @KimbleCharting: http://t.co/eYSJlrGoaU $SPY $SPX http://t.…
TV_Trading Ideas
2 Sep 15 00:34:01
My forecast. $SPY http://t.co/vJVqPmjpaD
Alpha Maven Alerts
2 Sep 15 00:33:58
$GS sentiment rise to: 0.63, change: +0.72, sdr: 1.02, 1H, 12:00 PM, #nyse $SPY $DJI
Fabio Labra
2 Sep 15 00:29:12
RT @KeithMcCullough: Core Short Position 1. $SPY (since July) #timestamped - see Q3 Global Macro Themes deck for why
artificial mustaches
2 Sep 15 00:27:45
$EURUSD and $SPY : inverse correlation. Long EURUSD if SPY loses Short EURUSD when SPY gains. Simple as that. Today? long $SPY short $EURUSD
Warrior Trading News
2 Sep 15 00:27:04
$SPY $VIX $QQQ $TVIX $DIA $AMBA $USO $XIV $SVXY $HRB $FIVE $COP $BOBE $QIHU $AAPL $BBRY $WYNN $LOCK $LEN $YHOO $LULU https://t.co/sjJWzw2vXL
TurboResearch
2 Sep 15 00:25:48
$SPY $ES $VIX So how fast can you read & can you beat the Algos to it ? :D
Arz Lubnan
2 Sep 15 00:25:19
#Markets Today: #Dead #Cats & #Death #Crosses. http://t.co/pTd9t7Zn8r http://t.co/3am9ywONrE $SPY $INDU $QQQ $RUT $VIX #Stock #Index #Beirut
TurboResearch
2 Sep 15 00:24:06
$SPY $ES $VIX Today we finally get the Beige Book for #FOMC happening in couple weeks. Will give us good idea on Sep Interest Rate decision.
Blue Trading FX
2 Sep 15 00:20:20
S&P Corrects Hard, There's Blood On The Street, What Should You Do? http://t.co/wjiYjkroAu $DIA $SPY $QQQ $IWM
James DiPlata
2 Sep 15 00:13:05
RT @iMagTweets: InvestorsMag’s Performances Since 08/22 ( Updated ) : http://t.co/h4LtBys8GT $AAPL $FB $MCD $HD $NKE $DIS $SPY $CVX $BA ...…
James DiPlata
2 Sep 15 00:13:05
RT @GrandSupercycle: *RALLY WARNING* RALLY WARNING* $SPY $AAPL $TSLA $COMP $NDX $ASX $FTSE http://t.co/jTq5vxvH2E
Robert Joseph
2 Sep 15 00:05:39
RT @StockTwits: Traders are seeing this and their jaws are dropping. Chart by @KimbleCharting: http://t.co/eYSJlrGoaU $SPY $SPX http://t.…
Alpha Maven Alerts
2 Sep 15 00:04:50
$FCX active, relative volume: 8.47, 1H, 8:00 AM, #nyse $SPY
BreakingStocksNews
2 Sep 15 00:01:03
$SPY $SUPN: All Cash Again: http://t.co/pcXfFmRW4B
Sir Q
2 Sep 15 00:00:47
RT @RaffiSosikian: Futures following $dax. Everything's green. Looks like an up day tmrw, but I suspect a huge sell off is around the corne…
Fractal Income
2 Sep 15 00:00:31
New $SPY alerts have recently been posted. Check them out now. http://t.co/mwMho8sF1X
AlsoThere
2 Sep 15 00:00:27
RT @KevinBCook: $SPY $GS was saying over weekend that $VIX pricing in recession fear when there should be none. Clearly ISM slipping to 51 …
q.analyses
1 Sep 15 23:59:59
$spy if ur not an engineer u pretty much....
q.analyses
1 Sep 15 23:59:33
$spy I believe engineers rule the world
Alpha Maven Alerts
1 Sep 15 23:58:42
$NFLX sentiment rise to: 0.57, change: +0.6, sdr: 1.15, 1H, 7:00 AM, #nasdaq $NDX $SPY
Giuseppe Locatelli
1 Sep 15 23:56:14
RT @StockTwits: Traders are seeing this and their jaws are dropping. Chart by @KimbleCharting: http://t.co/eYSJlrGoaU $SPY $SPX http://t.…
Mark Davison
1 Sep 15 23:54:31
RT @StockTwits: Traders are seeing this and their jaws are dropping. Chart by @KimbleCharting: http://t.co/eYSJlrGoaU $SPY $SPX http://t.…
Foad Aletomeh
1 Sep 15 23:54:22
RT @StockTwits: Traders are seeing this and their jaws are dropping. Chart by @KimbleCharting: http://t.co/eYSJlrGoaU $SPY $SPX http://t.…
Natascha Crundwell-U
1 Sep 15 23:54:04
RT @mining_metals: Gold Up on Safe-Haven Demand Amid World Stock Market Sell Off > $NUGT $SPY $QQQ $IWM $DIA $DJIA $STUDY $NEM $AUY $NG $CD…
Jordan Muñoz
1 Sep 15 23:54:04
RT @RyanDetrick: If the first day of Sept is down >2% (like today), the rest of the month drops another 5.33% on avg. $SPY http://t.co/IRO…
Mustafa Saygın
1 Sep 15 23:51:31
RT @RyanDetrick: If the first day of Sept is down >2% (like today), the rest of the month drops another 5.33% on avg. $SPY http://t.co/IRO…
				
				
By  +Follow February 3, 2014 6:00AM
Share:

Comments

 

blog comments powered by Disqus

 Today's Must Reads

Welcome to Equities.com's Small-Cap Throwdown


These Analysts Called Apple's (AAPL) Collapse, Here's What They're Saying Now

7 Dow Stocks Worth Owning and a Lot that Aren't

Sprint Turnaround Has Begun


Saving the

Small-Cap Market

 

Small-cap stocks offer investors many benefits, ranging from higher growth potential to overlooked value opportuni... in Equities.com's Hangs on LockerDome

About us

Equities.com is an advanced financial data portal and social network designed to connect self-directed investors with the world’s most innovative startup and small cap companies. Through our in-depth coverage of small cap markets, comprehensive research and stock valuation reports, state of the art issuer products, and world class events, Equities.com provides the social tools and insight that drive tomorrow’s investment relationships and opportunities.

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

Login or Register

LOG IN