FYI: The exchange-traded fund industry has a competition problem.
The $4 trillion industry has been unevenly bifurcated for years: Just three firms have steadily held on to 80% of ETF assets in some 600 products. That leaves another 1,600 ETFs and more than 100 firms competing like gunslingers in the Wild West. And there’s a new sheriff in town.
The Big Three—BlackRock’s iShares, Vanguard Group, and State Street’s Global Advisors—all have a comprehensive line of funds at hard-to-beat prices. In other words, for the most part, the ETF industry is dominated by good products offered by good companies. But the rest of the asset-management industry, along with the Securities and Exchange Commission, is now asking whether that concentration of power will snuff out innovation, or lead to a dearth of choices for investors.
Regards,
Ted
https://www.barrons.com/articles/etfs-are-dominated-by-blackrock-vanguard-and-state-street-the-sec-is-concerned-51554512133?mod=past_editions
