Two of the most prominent themes this year in the world of exchange-traded funds (ETFs) are investors flocking to ex-U.S. equity funds and the ongoing affinity for low-cost exposure.
Looking at this year’s top 10 asset-gathering ETFs, the one with the highest annual fee is the iShares MSCI EAFE Index Fund (ETF) (NYSEARCA:EFA), which charges a still reasonable 0.33% per year, or $33 annually on a $10,000 investment.
One of the primary reasons investors are widely embracing ex-U.S. markets this year is the hunt for value. Value meaning attractive earnings multiples and other valuation metrics, not necessarily low fees. With the bull market in U.S. stocks getting older by the day, investors are looking for alternatives to pricey U.S. equities. Those alternatives include familiar destinations such as Europe, Japan and emerging markets.
The good news for penny-pinching investors is that they can access developed and emerging markets stocks via an array of low-cost ETFs from some of the industry’s most well-known issuers. Consider some of the following cheap ETFs.