The classic ice cream segment contributed approximately 80% in global retail ice cream industry in 2012, whereas Nestle and Unilever, the two largest players captured one-third of the total market. New product development and innovation plays an important role as a growth driver for industry.
In this example, most investors would expect one share of the ETF to trade at $2 per share (the equivalent worth of Security X and Security Y). While this is a reasonable expectation, it is not always the case. It is possible for the ETF to trade at $2.02 per share or $1.98 per share or some other value.
Index funds have other draws. Most important, theyâre cheap. Vanguard Total Stock Market Index (VTSMX), the largest index mutual fund, charges just 0.17% per year. The expense ratio for the ETF version of the fund, Vanguard Total Stock Market ETF (VTI), is a mere 0.06%. (ETFs are baskets of securities that trade on exchanges just like stocks.) By contrast, the average expense ratio for actively managed U.S. stock funds is 1.32%.