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ETF price war spreads to smart-beta

Published 09/13/2017, 04:04 PM
© Reuters.  ETF price war spreads to smart-beta
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  • Goldman Sachs (NYSE:GS) is set to launch a new "smart-beta" ETF with an expense ratio of just 0.09% - not only is that less than traditional actively-managed mutual funds, but it's even lower than some passive index ETFs.
  • The price is so low, in fact, that Moody's is calling it a credit-negative event for both smart-beta ETF (think IVZ, BLK, WETF, STT) and mutual fund providers (think LM, BEN, JNS).
  • Moody's: "Much of the hope and investment traditional managers placed into smart beta as a product salvation may be at risk."
  • Source: Amey Stone at Barron's
  • Now read: State Street (STT) Presents At Barclays (LON:BARC) 2017 Global Financial Services Conference - Slideshow


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