Three fund firms have been chipping away at the ETF wall built by iShares, State Street and Vanguard. The Wall Street Journal
's Fund Track
today looks at the exchange-trade fund success of Pimco
, Charles Schwab
UK-based ETF Securities
and how it could effect other money managers.
WSJ reporter Ian Salisbury explains that finding a rare niche, like with ETF security's ETFS Physical Platinum Shares, can help distinguish one fund over another. ETFS manages $1.5 billion in assets with four commodity-based U.S. ETFs.
The column also look at the affect of Schwab's commission-free offering, which "spooked" BlackRock and Vanguard into following suit.
Fund companies like T. Rowe Price
, Legg Mason
and Goldman Sachs
are all hoping to see similar success. But there are history lessons lingering in the industry, such as a Fidelity's one and only ETF and Northern Trust ETF line which liquidated within a year.
Stay ahead of the news ... Sign up for our email alerts now