The fee war has moved into the global markets where fees for passive funds in Europe are expected to slip to to 15bp from 23bp by 2025. In the U.S. where passive funds already have a prominent position in investor portfolios, fees are anticipated to fall to an average of 11bp from 13bp by 2025.

Related: Why ETF Investors Should Look Into Indexing Methodologies

There are currently 2,199 U.S.-listed exchange traded products on the market, with $3.5 trillion in assets under management and an average 0.53% expense ratio, according to XTF data. The cheapest ETFs on the market currently come with a price tag of 0.03% or 3 basis points.

Active managers will likely have it worst off. PwC expects fees for actively managed funds in Europe to plunge by about 26% to 58bp from 78bp. Meanwhile, actively managed funds in the US, which have experienced large outflows in recent years, are predicted to fall to 38bp from an average of 43bp.

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