FYI: (This is a follow-up article.)
A shockwave hit the investment industry in August when asset manager Fidelity launched the first US zero-fee index-tracking mutual funds. It was a daring effort to seize the initiative in an escalating price war.
Rivals including BlackRock, Vanguard, State Street, Charles Schwab, Deutsche Bank and Lyxor have already cut fees on some of their most popular exchange traded funds to attract new business from investors.
Fidelity’s move, however, has re-ignited debate over how low fund fees can go and how widely the price war might spread with cut-throat competition now extending into charges for trading and advice. Mercer, the investment consultancy, has even suggested that asset managers should pay investors to run funds on their behalf.
Regards,
Ted
https://www.ft.com/content/305162f8-93f0-11e8-95f8-8640db9060a7
