ETF Fees Decline to Record Lows

The video discusses the ongoing trend of decreasing fees in the ETF and broader fund industry, highlighting a recent milestone where fees dropped below 20 basis points. This trend is driven by investor demand for cheaper products and is expected to continue, potentially reaching 10 basis points in the next decade. The impact on the industry is twofold: beneficial for investors due to lower costs, but challenging for asset managers who must adapt by offering premium products or focusing on actively managed fixed income funds.

What recent milestone did ETF fees achieve according to the discussion?

• ETF fees increased to 30 basis points

• ETF fees dropped below 20 basis points

• ETF fees remained constant at 25 basis points

• ETF fees increased to 50 basis points

What is the potential future trend for ETF fees as discussed?

• ETF fees might reach zero or even negative

• ETF fees will likely increase to 50 basis points

• ETF fees will stabilize at 30 basis points

• ETF fees will increase to 40 basis points

What percentage of investment flows have gone to funds with fees below 20 basis points this year?

• 100%

• 95%

• 75%

• 50%

How are asset managers adapting to the trend of decreasing fees?

• By focusing on premium products and actively managed fixed income funds

• By ignoring the trend and maintaining current strategies

• By reducing the number of available products

• By increasing fees on all products

What approach are investors taking that asset managers need to match?

• Adopting a core satellite approach with a mix of cheap beta and other products

• Investing solely in high-cost products

• Avoiding any form of active management

• Focusing entirely on passive investments