This article introduces a new type of complex emerging funds that are challenging the "Vanguard effect." According to Bloomberg Intelligence data, the average fees of newly launched ETFs this year have climbed to a record 65 basis points, indicating a departure from the low-fee philosophy advocated throughout Jack Bogle's life. The article, written by Bloomberg News reporter Emily Graffeo, focuses on the fee trends in the ETF market for 2025 and their potential impact.

  Welcome to ETF IQ, a weekly newsletter dedicated to the $14 trillion global ETF industry. I’m Bloomberg News reporter Emily Graffeo, filling in for Katie Greifeld      .  I won’t pretend to know exactly what the late Jack Bogle would say about the ETF market in 2025, but if I had to venture a guess, I’m not sure he’d be thrilled about the fees at least. The average cost of ETFs launched this year has climbed to a record 65 basis points, according to Bloomberg Intelligence, marking a shift from the low-cost gospel Bogle spent his life preaching.

Emerging Complex Funds Challenge the Vanguard Effect: ETF Fees Reach a New High in 2025