BlackRock, Inc. (BLK): More Free ETFs Aren’t Always Better

In particular, expanding the menu to include more international stock ETFs and niche bond funds necessitated bringing in some higher-expense-ratio offerings into the mix. More than a dozen of the ETFs charge half a percent or more in annual fees, representing a fairly substantial departure from the relatively low-cost alternatives that were among the previous menu of commission-free ETFs.

Look beyond the numbers
Brokerage companies have made much of their commission-free ETF offerings, touting rising numbers of funds eligible for free trading. But those deals are only as good as the quality of the funds available. When ETF companies make strategic decisions that result in bolstering assets among less liquid fund offerings rather than giving customers access to the best products available, you need to be aware of what’s going on — and consider the impact on your results from using those ETFs in your portfolio.

The article More Free ETFs Aren’t Always Better originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends BlackRock.

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