Why Some ETFs Cost More

摘要

It's no secret low-cost exchange-traded funds are big business for BlackRock Inc. Over the past decade, the money manager's line of iShares ETFs has become the most popular on the planet, amassing almost $2 trillion of client assets along the way. Its behemoth iShares Core S&P 500 ETF charges a management fee of just 0.04 percent of assets per year, or a scant 40￠ per $1,000. You might wonder how BlackRock makes money charging so little. What's rarely publicized is just how much of its ETF profits-its single biggest revenue source-comes from smaller, high-priced offerings.