News | 05.13.19
Fund Managers Offer to Pay Investors … but Why, and Will It Catch On?
The SEC is poised to rule on a new product from Salt Financial, which wants to offer exchange-traded funds (ETFs) with negative expense ratios. Some industry commentators view this as the latest stage in the competitive race for assets but others dismiss it as a marketing stunt. “The fee war is now a PR war,” wrote Ben Johnson, director of global ETF research at Morningstar. Todd Rosenbluth, senior director of ETF and mutual fund research at CFRA, expects other ETF providers to offer negative fees, and says it is a sign of how hard it is for new players to gather assets. “Some will dismiss this as a gimmick and marketing ploy,” he said. “It is a marketing effort, but there are lots of marketing efforts that investors have got comfortable with.”
Read the full article on Financial Times FTfm