10.04.23

Citigroup Says as Many as 50% of All ETFs Lose Money for Their Issuers

by: Katherine Greifeld

Up to a half of the more than 3,300 U.S.-listed exchange-traded funds (ETFs) are likely unable to cover their annual operating costs, according to a Citigroup analysis, due in large part to the industry’s drive for ever-lower fees. ETF expense ratios have dropped across asset classes as issuers compete for turf in an increasingly saturated market, with the likes of BlackRock, Vanguard and State Street Global Advisors leading the charge. While beneficial for investors buying into the products, the "race-to-the-bottom" threatens to squeeze the asset managers issuing the funds.

Read the full article on Bloomberg