Will established ETFs hold their ground despite growing competition?
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So, are investors actually ditching high-fee ETFs like SPY for more affordable options like VOO and IVV? If this keeps happening, could it make big fund companies reconsider how they set their prices? Or will people stick with the old favorites because they trust them and know they can easily trade them?
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There is a clear trend of investors preferring cheaper ETFs like VOO and IVV over high-fee options like SPY. Investors are moving from high-fee ETFs like SPY to cheaper options due to increased awareness of fees and a focus on long-term returns.
The rising trend for cost efficiency might lead big fund companies to adjust their pricing, even as many investors prefer SPY for its reputation, liquidity, and trust.
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@Kaile You are correct about the trend toward cheaper ETFs like VOO, but since SPY still offers superior liquidity and is favored by major institutional traders, doesn't that unmatched trading efficiency still justify its higher fee for investors who prioritize active, low-slippage execution in the U.S. market?
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@HodlHammer
Yes, SPY might have a higher fee, but you really can't beat its liquidity, tighter spreads, and the fact that many big players are involved. For U.S. investors who are trading frequently or dealing with substantial amounts, the lower chances of slippage are far more important than the difference in fees. Therefore, when it comes to execution quality, SPY is definitely worth considering.