That's down from more than sixteen basis points in late-June. The difference is the recent launch of the Vanguard Europe Pacific ETF (AMEX: VEA), which lowered the cost of access to the MSCI EAFE index from 0.35% to 0.15%.

As mentioned, this "low cost" portfolio is my way of keeping tabs on the state of the ETF industry. It follows a sample allocation that might fit an aggressive younger investor with a long time horizon. The fund positions, weights and costs are:

Blend it together and you get a net expense ratio of 0.148%. The fact that you can own such a well-diversified, balanced portfolio for less than 15 basis points (0.15%) is astounding to me. A few years ago, this would have cost a huge multiple of that. Buy that portfolio from a no-cost or low-cost brokerage account (or a portfolio-builder tool like FolioFn), rebalance annually and you're looking at a fairly sophisticated, diversified portfolio with minimal fees.

One obvious thing that jumps out about this portfolio is that Vanguard predominates. The reason, simply, is that Vanguard has staked out a position as the cost leader in the ETF space. That's not to say that Vanguard ETFs are the best choice for everyone - there are good reasons to choose other funds, including structure, service, etc. - but the company is doing yeoman's work putting pressure on the fee front.