Skip to Main Content
SUBMIT A TIP RECEIVE DAILY NEWS
Menu AdvisorHub
  • News
      • Latest News
          • this-weeks-top-stories-finra-suspends-broker-over-spousal-accommodation-lpl-nabs-550-mln-practice-12-5-mln-ubs-producers-hop-to-rbc-and-other-newsThis Week’s Top Stories: Finra Suspends Broker Over Spousal Accommodation, LPL Nabs $550-Mln Practice, $12.5 Mln UBS Producers Hop to RBC, and Other News
          • Finra-Arbitration-Panel-Squashes-Tro-Against-Ex-Jones-BrokerFinra Arbitration Panel Squashes TRO Against Ex-Jones Broker
          • Schwab-Hires-Ex-Td-Ameritrade-Ceo-Tom-Bradley-On-Eve-Of-MergerSchwab Hires Ex-TD Ameritrade CEO Tom Bradley on Eve of Merger
          • wire-wars-morgan-stanley-adds-another-ubs-teamWire Wars: Morgan Stanley Adds Another UBS Team
        • Close
      • Advisor Moves
          • wire-wars-morgan-stanley-adds-another-ubs-teamWire Wars: Morgan Stanley Adds Another UBS Team
          • Morgan-Stanley-Rotates-Veteran-Smith-Barney-ManagersMorgan Stanley Rotates Veteran Smith Barney Managers
          • Mega-UBS-Team-Joins-RBCUBS Mega-Team in L.A. Joins RBC Wealth
          • Stifel-Hires-130-Million-Asset-Merrill-Broker-In-TexasStifel Hires $130-Million-Asset Merrill Broker in Texas
        • Close
      • Enforcement
          • J-P-Morgan-Schwab-Win-Orders-Handcuffing-Breakaway-BrokersJ.P. Morgan, Schwab Win Orders Handcuffing Breakaway Brokers
          • Merrill-Raymond-James-To-Pay-12-Million-For-529-Plan-Sales-ViolationsMerrill, Raymond James to Pay $12 Million for 529 Plan Sales Violations
          • J-P-Morgan-Seeks-Tro-Against-Florida-Broker-Who-Joined-UbsJ.P. Morgan Seeks TRO Against Florida Broker Who Joined UBS
          • Massachusetts-Fines-Morgan-Stanley-For-Brokers-Excessive-TradingMassachusetts Fines Morgan Stanley for Broker’s Excessive Trading
        • Close
      • Opinion
          • Investor-Confidence-In-Stocks-Rightly-Declines-Opinion-772x485Investor Confidence in Stocks Rightly Declines: Opinion
          • Opinion-Schwabs-Zero-Commission-Decision-Challenges-Its-Ria-ClientsOpinion: Schwab’s Zero Commission Decision Challenges Its RIA Clients
          • Hedge Funds Binged on GE Stock Before Worst Rout in 11 YearsMillennials’ Portfolios Should Start to Leave Home: Nir Kaissar
          • Barry-Ritholtz-Secs-New-Best-Interest-Rule-Is-Far-From-Best-For-InvestorsBarry Ritholtz: SEC’s New ‘Best Interest’ Rule Is Far From Best for Investors
        • Close
      • Fintech News
          • Need-To-Move-1-6-Billion-Bank-Of-America-Has-An-App-For-That-772x485Need to Move $1.6 Billion? Bank of America Has an App for That
          • Robinhood-Is-Back-In-Washingtons-Crosshairs-After-Leverage-GlitchRobinhood Is Back in Washington’s Crosshairs After Leverage Glitch
          • Robinhood-Traders-Discovered-A-Glitch-That-Gave-Them-Infinite-Leverage-772x485Robinhood Traders Discovered a Glitch That Gave Them ‘Infinite Leverage’
          • U-S-Bank-To-Cut-Thousands-Of-Branch-Workers-In-Digital-PushU.S. Bank to Cut Thousands of Branch Workers in Digital Push
        • Close
      • From the Publisher
          • Richard Frick, Managing Partner and CEO of Gladstone Wealth GroupSeven Questions with Tony Sirianni: Richard Frick of Gladstone Wealth Group
          • Elizabeth Koehler-772×485Seven Questions with Tony Sirianni: BlackRock’s Elizabeth Koehler
          • David CanterSeven Questions with Tony Sirianni: Fidelity’s David Canter
          • 7 Questions Rich Whitworth 772×485Seven Questions with Tony Sirianni: Cetera Financial Group’s Richard Whitworth
          • Zero-Com-Just-Gave-Rias-A-21-Increase-In-Comp-OvernightSirianni: Zero Com just gave RIAs a 21% increase in Comp overnight
          • Chris Mone of WedbushSeven Questions with Tony Sirianni: Wedbush’s Chris Mone
          • Sirianni: You know you’re a European Broker when…Sirianni: You know you’re a European Broker when…
          • seven questions Craig Pirtle-772×485Seven Questions with Tony Sirianni: Craig Pirtle, Managing Director, B. Riley Wealth Management
        • Close
    • Close
  • Deals & Comp
  • Recruiting Wire
  • Resources
    • resources-home-menuResources Home
    • PRACTICE MANAGEMENT RESOURCESPractice Management Resources
    • Transition ResourcesTransition Resources
    • Fintech ResourcesFintech Resources
    • menu fintechFintech Product Directory
    • Boutique Wealth AdvisorsBoutique
    • EventsEvents
    • Close
  • Institute
  • Podcasts
  • Markets
    • Market-News-MenuMarkets
    • OUT OF THE BOX SERIES BY MARK GRANTOut of the Box Series by Mark Grant
    • Boutique Wealth AdvisorsBoutique
    • Close
  • RIA Center
close X
November 27, 2019

ETF Market Riven by Giants and Fee Wars Claims Another Victim

by Bloomberg News
|
Sectors
|
No Comments
Share This
SUBMIT A TIP
ETF Market Riven by Giants and Fee Wars Claims Another Victim
G0d4ather / Getty Images

Bloomberg – BMO Global Asset Management is closing its exchange-traded funds business in Europe after a four-year struggle for market share in an industry dominated by large firms and low-fee offerings.

The Montreal-based manager, which oversees $669 million across 13 funds, plans to shut the ETFs on or around Jan. 21, according to a regulatory notice. The move was prompted in part by “the current level of assets under management and projected asset growth in the current market environment,” it said in the notice.

A spokesman for BMO said the closures will have “no material impact on BMO GAM’s wider investment proposition.”

Since listing its first regional products in 2015, the firm’s market share has flatlined at 0.1%, compared with 45% for BlackRock Inc. and 10.5% for DWS Group, according to data compiled by Bloomberg Intelligence. New competitors are knocking on the door. Goldman Sachs Asset Management entered the European market this year, while WisdomTree purchased a specialist ETF business last year.

“It’s just a natural part of competition and firms rationalizing their line-ups,” said Athanasios Psarofagis, a European ETF analyst at Bloomberg Intelligence in London. “But it’s much harder for the little firms.”

Fee pressure is also ramping up, with the likes of Vanguard Group recently slashing costs on its passive products in the region. Paris-based Amundi SA rolled out nine products charging just 5 basis points earlier this year.

“This has been a big year for fee cuts, so I think they just saw the difficulty in competing there and scaling up,” Psarofagis said.

The largest fund affected is the BMO Bloomberg Barclays 1-3 Year Global Corporate Bond GBP Hedged ETF with about 142 million pounds ($183 million) in assets.

Like this article? Let AdvisorHub come to you!  Sign up

Share This
No Comments

Leave a Reply Cancel reply


  • About Us
  • Contact Us
  • Advertise
  • Events
  • Careers

 get our newsletter

Industry focused content and breaking news.

SIGN UP

Contact Us

Phone: 540-687-7003

PO Box 1232
Middleburg, VA 20118

311 W. 43rd St.,
12th Floor
New York, NY 10036

© 2019 AdvisorHub
  • |Terms of Use
  • |Privacy Policy
  • |Advertise
  • |Careers
  • Facebook
  • Linkedin
  • Twitter
  • Google

Back to top