Meet The New State Street Portfolio ETFs
Written by David Fabian, October 24th, 2017
The investment management fee wars just escalated to a new level with the announcement that State Street is dropping expenses and re-naming 15 of its diversified exchange-traded funds. This transformed group will be dubbed the “SPDR Portfolio” series and is aimed squarely at the likes of Vanguard, BlackRock, and Charles Schwab in testing the ultimate boundaries of minimalist fund costs.
The new average expense ratio across all 15 SPDR portfolio ETFs is an astounding 0.06%, with several offerings being listed for as low as 0.03%. That’s just $30 per year in embedded expenses for every $100,000 invested and marks a strong advancement for ETF portfolio construction. State Street has also partnered with TD Ameritrade to make these funds commission-free to trade on their brokerage platform, further maximizing the total return of these funds for shareholders.