FYI: (This is a follow-up article.)
There’s a whiff of desperation among asset managers in their seemingly never-ending war on fund fees.
Last week, one ETF upstart created a minor splash by doing what was once unthinkable -- offering to pay investors to buy into its exchange-traded fund. That comes on the heels of eight fund providers -- including JPMorgan Chase, Vanguard and BlackRock to name a few -- all slashing fees in one of the industry’s most aggressive rounds of price cuts to date.
All told, it’s never been cheaper to invest in ETFs. But for some, it’s a sign all is not well for the passive-investing boom as average fees fall toward zero.
“It could actually backfire” for asset managers, says Eric Balchunas, an analyst at Bloomberg Intelligence.
Regards,
Ted
https://www.bloomberg.com/news/articles/2019-03-20/as-cash-back-etf-hits-market-signs-of-trouble-start-to-mount
