New ETF Providers May Change the Industry

October 10th at 1:00am by Tom Lydon

The exchange traded fund (ETF) industry is evolving right before our eyes. In the last year or so, many household names have either filed for or launched their own ETFs, changing the face of the industry more than ever before.

The big three ETF providers - iShares, State Street and Vanguard - have dominated the ETF industry since the early days. The landscape is changing now, and it’s getting intensely competitive.

Cogent Thoughts reports that a number of established asset managers and distributors—including firms like Legg Mason, T. Rowe Price, Eaton Vance, John Hancock, PIMCO, and Charles Schwab—have entered the market or have filed to offer some type of ETF. [The ETF Supermarket Has Arrived.]

For investors, this competition is a boon. It has already lead to far more competitive pricing, from lower expense ratios to even commission-free trades on certain platforms. In the future, new players will drive the ETF industry to create the best products possible in order to lure investors. [As ETF Industry Grows, Some Stay Skeptical.]

Tisha Guerrero contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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