What I learned this week⌗

Software⌗

“As a case in point, the iShares US Technology ETF (IYW) is consistently dominated by the Technology Select Sector SPDR Fund (XLK) and the Vanguard Information Technology Index Fund (VGT). At the end of our sample, IYW generates an annualized $18 million in fees with a 0.43% expense ratio on $4 billion in assets. XLK and VGT generate $28 million and $20 million in fees, respectively, despite their much larger sizes of $22 billion and $20 billion in assets. Even though SPDR and Vanguard attract five times the assets with significantly lower expense ratios of 0.13% and 0.10%, the three funds are each profitable and generate similar fee income.”