What the Morgan Stanley-E*Trade Deal Means for ETFs

Morgan Stanley is acquiring E-Trade for $13 billion, highlighting a trend of consolidation in the financial industry. This move reflects a shift from wholesale to retail, driven by the need for firms to be competitive through scale or differentiated services. The industry is seeing vertical integration, with companies expanding into new areas and competing across various sectors. Examples include Vanguard's advisory services, JP Morgan's ETFs, and Goldman's online banking, similar to Morgan Stanley's strategy.

What challenges are firms facing that are driving the trend of consolidation?

What are some of the services that firms like Vanguard and JP Morgan are expanding into?