Fund managers forego billions in fees in race to the bottom

Quick Summary:

In the past two years, passive funds have attracted more than $1.1tn in net new money in the US while active funds shed almost $1.

This near parity is only the case because it has unveiled several rounds of fee cuts, particularly in its mutual funds, in recent years, coinciding with its entry into the ETF sector.

Fee pressure is evident even for a group such as Dimensional, whose ETFs are only marginally cheaper than its comparable mutual funds.

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Article Details

Author / Journalist: Emma Boyde

Category: MarketsFinanceInvesting

Markets: United States

Topics: Funds Money Passive Fees Years Cent Mutual Research Etfs Fund Managers

Source Website Secure: Yes (HTTPS)

News Sentiment: Neutral

Fact Checked: Legitimate

Article Type: News Report

Published On: 2024-07-17 @ 04:00:12 (11 hours ago)

News Timezone: GMT -5:00

News Source URL: ft.com

Language: English

Article Length: 822 words

Reading Time: 5 minutes read

Sentences: 28 lines

Sentence Length: 30 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © Financial Times

News ID: 21659996

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Main Topics: MarketsFinanceInvesting

Official Website: ft.com

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