The Bottom Line: Sustainable index tracking ETF fees range from a low of 0.1% to a 0.75% high, offering investors a range of pricing options.
Assets and average expense ratios for top 10 sustainable index tracking ETF investment categories
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Notes of Explanation: Assets=total net assets. Expense ratios are average for the investment category. Data as of August 31, 2023. Sources: Morningstar Direct and Sustainable Research and Analysis.
Observations:
- The universe of index tracking sustainable ETFs at the end of August stood at 160 ETFs with $90.6 billion in net assets. The average expense or fund fee levied by these funds is 0.35%.
- The top 10 sustainable index tracking ETF investment categories, accounting for 104 funds with $83.8 billion in assets under management, or 92% of the segment’s assets, charge an average fee or expense ratio of 0.32%, or 32 basis points.
- Average expense ratios for the top 10 sustainable index tracking ETFs range from a low of 13 basis points applicable to the two ETFs that make up the intermediate core bond funds investment category to a high of 57 basis points covering the 18 ETFs that comprise the miscellaneous sector consisting of thematic funds.
- The largest sustainable index tracking segment consists of 31 ETFs in the large blend investment category, with an average expense ratio of 24 basis points.
- Across the top ten investment categories, expense ratios for individual funds range from a low of 0.1% charged by the SPDR S&P 500 ESG ETF (EFIV) or the iShares ESG US Aggregate Bond ETF (EAGG), to name just two, to a high of 75 basis points levied by the thematic Impact Shares YMCA Women’s Empowerment ETF (WOMN).
