In response, some providers such as Charles Schwab have offered free trades for in-house brokerage accounts. However, it is more important for investors to follow a sound, long term investment strategy to avoid abusing too much of a good thing.
The bulk of the $2 trillion in assets under management are concentrated among the largest ETF managers. Investors who seek ETFs from smaller providers should note liquidity and be aware that smaller funds do face consolidation or closure. As the industry growth supports ETF proliferation, it is more important than ever for investors to do their research. [Why ETF Providers are Stepping Up Their Game]
“The largest provider of ETF and ETP was iShares, with $760bn assets, reflecting a 39% market share. SPDR ETFs was second, with $337bn and a 17.3% market share, followed by Vanguard with $246bn and a 12.6% market share. The same data showed that these top three providers, out of 208, accounted for $1.34bn (68.9%) of global ETF/ETP assets, while the remaining 205 providers each had less than 4% market share,” Chiara Albanese for Investment Europe wrote.
Tisha Guerrero contributed to this article.