Price Competition in ETF Market

LOW COST FUNDS: db X-trackers is the latest ETF provider to slash fees; investors should consider re-allocating their holdings but remain vigilant when evaluating costs

Kenneth Lamont 14 February, 2014 | 3:14PM

Earlier this week, db X-trackers announced it had aggressively cut fees on a newly-created range of core ETFs as part of a wider move to migrate its funds from synthetically to physically backed. The change will see the total expense ratio (TER) on funds tracking the DAX, Euro Stoxx 50, FTSE 100 and the MSCI USA fall to 0.09%, undercutting comparable products offered by rivals iShares, Vanguard and Lyxor. The move, aimed at attracting more assets, is likely to further fan the flames of price competition within the European ETP market.

Fee slashing may grab the headlines but not all investors will benefit from the move. To illustrate the point, we will take a closer look at the FTSE 100 ETFs currently trading on the London Stock Exchange, listed in the table below.

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

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
X FTSE 100 ETF 1C919.88 GBX-0.11

About Author

Kenneth Lamont  is a passive funds research analyst for Morningstar Europe.

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