A price war among providers of exchange-traded funds (ETFs) deepened today with the announcement from Lyxor that it would be lowering fees on 12 of its products to what it claims are the lowest in Europe.
The €116 billion Paris-based asset manager also announced the launch of four new low-cost ETFs.
The 12 existing funds and the four new ones have management fees of between 0.04% and 0.12%.
Lyxor, the asset management arm of France’s Societe Generale, claims that the fees on its core ETF range are now on average 40% lower than its closest competitors.
The four new funds were listed on the Deutsche Boerse today and will launch on the London Stock Exchange tomorrow.
“Investors tell us they want simple, high quality ETFs at low costs,” said Arnaud Llinas, head of ETFs and indexing at Lyxor. “We’ve launched our core range to achieve cornerstone investments for any portfolio.”
The move comes as a focus on fees has intensified over the last year with pressure from both regulators and end investors.
“This type of product innovation is exactly what the ETF industry needs, offering investors a lower cost option without compromising on quality,” said James McManus, investment manager at online wealth manager Nutmeg.
In October, State Street Global Advisors lowered management fees on 15 of its ETFs to 0.03%.
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