Plus: More Savings for ETF Investors
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JUNE 29, 2020 [View in browser](
WHAT YOU NEED TO KNOW ABOUT THE CORONAVIRUS OUTBREAK
COVID-19 infection numbers are surging in the U.S. as many southern and western states see the kind of infection spiral that hit parts of the Northeast and Midwest earlier. Total new cases nationwide have exceeded 40,000 per day in the past three days, a new record. 22 states are experiencing a rising trend in infections, though only eight are truly worrisome for now: Fla., Texas, Ariz., Nev., Ala., Ga., N.C. and S.C. To their credit, most of these have increased their testing rate, so part of the infection pickup is the result of more testing finding more cases. Fortunately, things seem to be under control in most of the Northeast and Midwest, where infection rates have picked up only a little as those states have begun to reopen.
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The Northeast and Midwest had their surge and brought it down. Perhaps the South and West can do the same. The tricky part will be doing it without the broad stay-at-home orders that helped control the virus in the early hotspots, as it seems that most of the states in the South and West don't want to impose such severe restrictions. So it may take more time to bring these new surges under control.
Good news for ETF investors looking to save on fees: Buying "The Market" is getting cheaper at iShares. It's the latest fund provider to fire a salvo in the ETF "fee wars." Late last week, BlackRock's ETF arm lowered the expenses on three of its flagship funds by a basis point -- one one-hundredth of a percent -- each. The iShares Core S&P Small-Cap ETF ([IJR]( will go from 0.07% to 0.06% in annual fees, or $6 annually on a $10,000 investment; the iShares Core S&P Mid-Cap ETF ([IJH]( will go from 0.06% to 0.05%; and most importantly, the iShares Core S&P 500 ETF ([IVV]( will drop from 0.04% to 0.03%.
A basis point doesn't sound like much, but it adds up for investors over time. For BlackRock, though, it could mean millions, if not billions, of dollars in new fund flows. That single basis point puts IVV's fees level with competitors Vanguard S&P 500 ETF ([VOO]( which is growing faster, and the newer SPDR Portfolio S&P 500 ETF ([SPLG](. That's vital considering that fees are often the deciding factor for investors when deciding between similar ETFs.
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