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 as a contributor and get eyeballs on your content FOR FREE!

Results for SPY
Harvey Malovich
25 Oct 14 08:45:43
RT @longrundata: $MO Total returns /yrly since 1999,04,&09: 21.7%,21.3%,28.5% vs $SPY 4.7%,7.5%,14.9% & $XLP 6.5%,9.5%,15.2%:http://t.co/OG…
Peter
25 Oct 14 08:45:22
Trendanomics Market Report: Trend following and the news http://t.co/0RLoJmrBcR #trendfollowing #stocks $spy
Seeking Alpha
25 Oct 14 08:44:45
Victory For The Bears http://t.co/akbbl8nch3 $EFA $IWM $SPY
Michael
25 Oct 14 08:43:26
RT @philstockworld: Friday's Fearful Outlook as #Ebola Hits NYC: $SPY $DIA $AMZN $TSLA $TM #Amazon -- http://t.co/UIMDFJvSW2 http://t.co/VN…
Michael
25 Oct 14 08:43:12
RT @philstockworld: Friday Freak-Out: #Ebola Spooks the Markets, Iron Ore Collapsing -- http://t.co/l9C4m3vxVZ $SPY $DIA $IWM $QQQ #Futur…
Chess
25 Oct 14 08:42:48
NEW POST: Traders: Millions By The Minute http://t.co/9SdRhYpD6T $IWM $QQQ $SPY $STUDY
armando
25 Oct 14 08:42:42
@mrdollamaker here is my analysis $spy daily chart important level I see https://t.co/EmLlyAP0hO
Tom James
25 Oct 14 08:41:45
RT @philstockworld: Friday's Fearful Outlook as #Ebola Hits NYC: $SPY $DIA $AMZN $TSLA $TM #Amazon -- http://t.co/UIMDFJvSW2 http://t.co/VN…
armando
25 Oct 14 08:40:22
$SPY chart https://t.co/TaSGFx0KMa via http://t.co/gH6btxpodo here is the daily chart important plan for everything
โบ๊ทเล็ก ห้
25 Oct 14 08:39:32
RT @philstockworld: Friday's Fearful Outlook as #Ebola Hits NYC: $SPY $DIA $AMZN $TSLA $TM #Amazon -- http://t.co/UIMDFJvSW2 http://t.co/VN…
Maleah
25 Oct 14 08:39:10
http://t.co/5qzSIjoPtA <--- Amazing subscriber to Super_Trades - check out his profit chart!!! $CREE $AWRE $SPY $HLX $RGLS
tradewithjoe
25 Oct 14 08:38:21
After Friday's price action the $IWM is beginning to look tired. $SPY was a beast. Caution ahead.
The Turtle Follower
25 Oct 14 08:38:13
RT @RyanDetrick: Buying the $SPX close on 10/27 is the single most bullish day to hold for 5 days since '50. $SPY http://t.co/vi2Oows4ut
PRP Solutions,
25 Oct 14 08:37:51
RT @philstockworld: Friday's Fearful Outlook as #Ebola Hits NYC: $SPY $DIA $AMZN $TSLA $TM #Amazon -- http://t.co/UIMDFJvSW2 http://t.co/VN…
PastryScoop.com
25 Oct 14 08:36:52
RT @philstockworld: Friday's Fearful Outlook as #Ebola Hits NYC: $SPY $DIA $AMZN $TSLA $TM #Amazon -- http://t.co/UIMDFJvSW2 http://t.co/VN…
LONGRUNDATA
25 Oct 14 08:36:26
@themotleyfool $MO Total returns/yrly since 1999,04,&09:21.7%,21.3%,28.5% vs $SPY 4.7%,7.5,14.9 & $XLP 6.5%,9.5,15.2:http://t.co/1WjNhzFUcZ
vegasmommies.
25 Oct 14 08:35:48
RT @philstockworld: Friday's Fearful Outlook as #Ebola Hits NYC: $SPY $DIA $AMZN $TSLA $TM #Amazon -- http://t.co/UIMDFJvSW2 http://t.co/VN…
vegasmommies.
25 Oct 14 08:35:35
RT @philstockworld: Friday Freak-Out: #Ebola Spooks the Markets, Iron Ore Collapsing -- http://t.co/l9C4m3vxVZ $SPY $DIA $IWM $QQQ #Futur…
BlueSky
25 Oct 14 08:35:32
RT @philstockworld: Friday's Fearful Outlook as #Ebola Hits NYC: $SPY $DIA $AMZN $TSLA $TM #Amazon -- http://t.co/UIMDFJvSW2 http://t.co/VN…
BlueSky
25 Oct 14 08:35:17
RT @philstockworld: Friday Freak-Out: #Ebola Spooks the Markets, Iron Ore Collapsing -- http://t.co/l9C4m3vxVZ $SPY $DIA $IWM $QQQ #Futur…
Dave Ziegler
25 Oct 14 08:35:08
RT @philstockworld: Friday's Fearful Outlook as #Ebola Hits NYC: $SPY $DIA $AMZN $TSLA $TM #Amazon -- http://t.co/UIMDFJvSW2 http://t.co/VN…
Todd Albertson
25 Oct 14 08:34:52
RT @philstockworld: Friday's Fearful Outlook as #Ebola Hits NYC: $SPY $DIA $AMZN $TSLA $TM #Amazon -- http://t.co/UIMDFJvSW2 http://t.co/VN…
Ryan Detrick, CMT
25 Oct 14 08:34:29
Buying the $SPX close on 10/27 is the single most bullish day to hold for 5 days since '50. $SPY http://t.co/vi2Oows4ut
Chris Soria
25 Oct 14 08:34:11
Hope everyone bought up everything they could on that dip. Almost all losses for October have been regained. $SPY
Caleb Fort
25 Oct 14 08:33:33
RT @philstockworld: Friday's Fearful Outlook as #Ebola Hits NYC: $SPY $DIA $AMZN $TSLA $TM #Amazon -- http://t.co/UIMDFJvSW2 http://t.co/VN…
Caleb Fort
25 Oct 14 08:33:19
RT @philstockworld: Friday Freak-Out: #Ebola Spooks the Markets, Iron Ore Collapsing -- http://t.co/l9C4m3vxVZ $SPY $DIA $IWM $QQQ #Futur…
Amber LaFrance
25 Oct 14 08:33:02
RT @philstockworld: Friday's Fearful Outlook as #Ebola Hits NYC: $SPY $DIA $AMZN $TSLA $TM #Amazon -- http://t.co/UIMDFJvSW2 http://t.co/VN…
LONGRUNDATA
25 Oct 14 08:32:46
@jimcramer $MO Total returns/yrly since 1999,04,&09: 21.7%,21.3%,28.5% vs $SPY 4.7%,7.5%,14.9% & $XLP 6.5%,9.5%,15.2%:http://t.co/OGzEKG4Hzq
Amber LaFrance
25 Oct 14 08:32:44
RT @philstockworld: Friday Freak-Out: #Ebola Spooks the Markets, Iron Ore Collapsing -- http://t.co/l9C4m3vxVZ $SPY $DIA $IWM $QQQ #Futur…
kim' '
25 Oct 14 08:31:55
RT @philstockworld: Friday's Fearful Outlook as #Ebola Hits NYC: $SPY $DIA $AMZN $TSLA $TM #Amazon -- http://t.co/UIMDFJvSW2 http://t.co/VN…
LONGRUNDATA
25 Oct 14 08:31:18
$MO Total returns /yrly since 1999,04,&09: 21.7%,21.3%,28.5% vs $SPY 4.7%,7.5%,14.9% & $XLP 6.5%,9.5%,15.2%:http://t.co/OGzEKG4Hzq
Kevin Hertel
25 Oct 14 08:30:52
RT @philstockworld: Friday's Fearful Outlook as #Ebola Hits NYC: $SPY $DIA $AMZN $TSLA $TM #Amazon -- http://t.co/UIMDFJvSW2 http://t.co/VN…
Kevin Hertel
25 Oct 14 08:30:22
RT @philstockworld: Friday Freak-Out: #Ebola Spooks the Markets, Iron Ore Collapsing -- http://t.co/l9C4m3vxVZ $SPY $DIA $IWM $QQQ #Futur…
Alex Schwed
25 Oct 14 08:29:57
RT @philstockworld: Friday's Fearful Outlook as #Ebola Hits NYC: $SPY $DIA $AMZN $TSLA $TM #Amazon -- http://t.co/UIMDFJvSW2 http://t.co/VN…
Alex Schwed
25 Oct 14 08:29:36
RT @philstockworld: Friday Freak-Out: #Ebola Spooks the Markets, Iron Ore Collapsing -- http://t.co/l9C4m3vxVZ $SPY $DIA $IWM $QQQ #Futur…
Steve Wagner
25 Oct 14 08:29:19
RT @philstockworld: Friday's Fearful Outlook as #Ebola Hits NYC: $SPY $DIA $AMZN $TSLA $TM #Amazon -- http://t.co/UIMDFJvSW2 http://t.co/VN…
Matt K
25 Oct 14 08:28:32
RT @RyanDetrick: CBOE equity p/c ratio continues to try to roll over from high level. Could be very bullish http://t.co/Lz1z6JgvOw $SPY
Chaker Khazaal
25 Oct 14 08:28:16
RT @philstockworld: Friday's Fearful Outlook as #Ebola Hits NYC: $SPY $DIA $AMZN $TSLA $TM #Amazon -- http://t.co/UIMDFJvSW2 http://t.co/VN…
Michael Fine
25 Oct 14 08:27:43
Scariest day of the market looms - and it's not even Halloween yet. $SPY http://t.co/qKEPZRRaqn
Chaker Khazaal
25 Oct 14 08:27:40
RT @philstockworld: Friday Freak-Out: #Ebola Spooks the Markets, Iron Ore Collapsing -- http://t.co/l9C4m3vxVZ $SPY $DIA $IWM $QQQ #Futur…
James Tilford
25 Oct 14 08:27:17
RT @philstockworld: Friday's Fearful Outlook as #Ebola Hits NYC: $SPY $DIA $AMZN $TSLA $TM #Amazon -- http://t.co/UIMDFJvSW2 http://t.co/VN…
susanta biswal
25 Oct 14 08:27:10
RT @RyanDetrick: CBOE equity p/c ratio continues to try to roll over from high level. Could be very bullish http://t.co/Lz1z6JgvOw $SPY
Uploadingit
25 Oct 14 08:26:57
RT @philstockworld: Friday's Fearful Outlook as #Ebola Hits NYC: $SPY $DIA $AMZN $TSLA $TM #Amazon -- http://t.co/UIMDFJvSW2 http://t.co/VN…
James Tilford
25 Oct 14 08:26:49
RT @philstockworld: Friday Freak-Out: #Ebola Spooks the Markets, Iron Ore Collapsing -- http://t.co/l9C4m3vxVZ $SPY $DIA $IWM $QQQ #Futur…
Uploadingit
25 Oct 14 08:26:26
RT @philstockworld: Friday Freak-Out: #Ebola Spooks the Markets, Iron Ore Collapsing -- http://t.co/l9C4m3vxVZ $SPY $DIA $IWM $QQQ #Futur…
Tyler Contente
25 Oct 14 08:26:01
RT @philstockworld: Friday's Fearful Outlook as #Ebola Hits NYC: $SPY $DIA $AMZN $TSLA $TM #Amazon -- http://t.co/UIMDFJvSW2 http://t.co/VN…
FinancialTrader
25 Oct 14 08:25:42
"@RyanDetrick: CBOE equity p/c ratio continues to try to roll over from high level. Could be very bullish http://t.co/btBLjnoJnQ $SPY"
FinancialTrader
25 Oct 14 08:25:40
"@RyanDetrick: Cumulative NYSE A/D still looks strong. $SPY http://t.co/lLUZjeGdKr"
Johnny Schillereff
25 Oct 14 08:24:52
RT @philstockworld: Friday's Fearful Outlook as #Ebola Hits NYC: $SPY $DIA $AMZN $TSLA $TM #Amazon -- http://t.co/UIMDFJvSW2 http://t.co/VN…
Elizabeth
25 Oct 14 08:24:31
RT @philstockworld: Friday's Fearful Outlook as #Ebola Hits NYC: $SPY $DIA $AMZN $TSLA $TM #Amazon -- http://t.co/UIMDFJvSW2 http://t.co/VN…
				
				
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.