Vanguard has just reduced the expense ratios of 24 of its ETFs. The reductions are fairly substantial. What I noticed, in particular, is that the reductions include sector-specific ETFs.
The Vanguard Energy ETF (VDE), the Vanguard Information Technology ETF (VGT), the Vanguard Telecom ETF (VOX), and the Vanguard Utility ETF (VPU) each now have 0.14% expense ratios vs. 0.19% previously. While the expense ratios of these funds were already low, the new expenses are 26% lower than before. Continue reading →
The telecommunications industry is evolving quickly. Recent data suggests, for example, that half of all adults in the United States have a tablet or smartphone. There are many countries that have an average of more than one cell phone line per person. In the developing economies, cell phones have allowed much broader access to voice and data services than would have been possible if the traditional fixed-line infrastructure needed to be built. Ten years ago, Nigeria had only 100,000 phone lines. Today, Nigeria has 100 Million cell phone accounts. The ways that people use telecommunications are also expanding. For people with little or no access to banking, mobile money services can provide the essential roles of banking. The continued convergence of banking with telecommunications has substantial implications for both. Continue reading →