[fairity]

There seems to already be significant competition in the low cost ETF space. For example, Schwab’s broad based s&p ETF (SCHB) has $34b AUM.

The fact that there exists a competitive market suggests that there’s a good reason expense ratios can’t drop much further than .03%. Presumably, once you reach a certain size, there are costs associated with managing a low cost etf strategy that the end investor actually wants to pay for.

What makes you think you can beat these market rates in a way that is truly accretive to investors? Put another way, what is Schwab wasting money on that you won’t?

I doubt Schwab is just being greedy with their .03% fee. It’s necessary to cover their costs.