Competitive Spirit Amongst ETF Providers

ETF providers are fighting for ultimate supremacy in the market by cutting prices and launching new ETFs

Lee Davidson 4 January, 2013 | 12:49AM
Facebook Twitter LinkedIn

The ongoing battle between exchange-traded fund (ETF) providers escalated further last month with more announcements of price cuts, ETF launches, ETF closures, and new wrinkles in the replication method debate.

iShares vs. Ossiam

A new front in the fee war was opened in December as iShares launched a new range of funds on the London Stock Exchange that track MSCI minimum volatility indices. These ETFs sport significantly lower fees than their nearest competitors, which largely consist of funds in Ossiam’s minimum variance lineup. The differences in the fee levels of the new iShares funds and their most closely comparable Ossiam rivals are non-trivial. For instance, iShares S&P 500 Minimum Volatility (SPMV) has a total expense ratio (TER) of 0.20% versus the Ossiam ETF US Minimum Variance (LUMV) which has a TER of 0.65%. Similarly, iShares MSCI Emerging Market Minimum Volatility (EMMV) has a TER of 0.40% versus the 0.75% levied on Ossiam ETF Emerging Markets Minimum Variance (DEMV). Clearly, when it comes to fees, ETF providers are becoming increasingly cognisant of the role fees play in investors’ decision-making process.

Boost ETP Arrives on the Scene

Boost ETP, a new exchange-traded product (ETP) provider, launched its first two ETPs on the London Stock Exchange in December. Boost ETP was formed in October by former ETF Securities employees Hector McNeil and Nik Bienkowski.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Facebook Twitter LinkedIn

About Author

Lee Davidson

Lee Davidson  is an ETF analyst with Morningstar Europe.

Audience Confirmation


By clicking 'accept' I acknowledge that this website uses cookies and other technologies to tailor my experience and understand how I and other visitors use our site. See 'Cookie Consent' for more detail.

  • Other Morningstar Websites
© Copyright 2021 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies       Modern Slavery Statement