U.S. ETF trading volumes hit record lows in January, which could end up increasing transaction costs for retail investors, according to an article on the Financial Times.

Reduced trading of ETF by hedge funds, one of the largest users of ETFs, played a role in the falling trading volume. The high volume of daily trades is what allows for trading costs to be so low for ETFs, according to the article.

Some smaller funds, like the United States Natural Gas Fund (NYSEArca: UNG), have already been affected. The average daily spread for UNG increased to 0.17 percent in January, up from 0.11 six months before, the FT report said.

Head over to FT.com for the full story.