ETF Shares cuts fees on US technology ETF

ETF Shares has reduced the management fee on its ETFS US Technology ETF (ASX:WWWW) positioning the fund as one of the lowest-cost options for Australian investors seeking exposure to leading US technology companies through the ASX.

The management fee has been cut from 0.29% a year to 0.17% a year, effective July 27, as competition intensifies among ETF providers to attract investors looking for cost effective access to global equity markets.

Unlike many traditional US technology ETFs, WWWW includes companies such as Alphabet and Met Platforms, which sit outside the information Technology sector under the Global Industry roles in artificial intelligence, digital advertising, cloud computing and digital infrastructure.

ETF Shares chief executive Cliff Man said the fund was designed to better reflect how the technology sector has evolved.

"Technology has become one of the most important investment themes of the past decade, but the way traditional sector indices define technology does not always reflect the companies that are driving innovation today," Man said.

"Companies such as Alphabet and Nvidia are central to the development of artificial intelligence, digital infrastructure and the modern internet economy, yet they sit outside the traditional Information Technology sector classification."

The fee reduction comes as Australian investors increasingly seek global equity exposure, with many also turning to US-listed ETFs despite the additional costs associated with offshore investing.

Man said ASX-listed ETFs provided a simpler and more cost effected alternative for many investors.

"Buying an ETF on the ASX provides Australian investors with a simple and efficient way to access global markets without needing to open an offshore brokerage account," he said.

"Investors who buy US-listed securities directly can face additional costs, including foreign exchange spreads charged when converting Australian dollars into US dollars, as well as potential platform, custody or account fees associated with holding international securities."

"An ASX-listed ETF provides investors with Australian-dollar trading, local market hours and the convenience of holding the investment alongside their other ASX holdings."

ETF Shares said the fee reduction reflects its broader strategy of brining popular global investment exposures to Australian investors through locally listed products.