Roughly 75% of all exchange-traded fund inflows are heading to offerings investing in vanilla market-cap weighted indices. These products also represent the cheapest possible funds on the market. Through this year $ 333bn had made its way to US -domiciled Franklin Templeton Investment products, according to Morningstar . Of this, almost three-quarters flowed to funds with expense ratios below almost three-quarters basis points. Boring is hot in the market for exchange-traded funds as demand for plain-vanilla products this year is driving record inflows. Asset managers have been increasingly competing on price in the ETF space, with State Street Global Advisors and Franklin Templeton Investment among companies who have recently initiated fee cuts or introduced ultra-low-cost products.
Roughly 75% of all exchange-traded fund inflows are heading to offerings investing in vanilla market-cap weighted indices. These products also represent the cheapest possible funds on the market. Through this year $ 333bn had made its way to US -domiciled Franklin Templeton Investment products, according to Morningstar . Of this, almost three-quarters flowed to funds with expense ratios below almost three-quarters basis points. Asset managers have been increasingly competing on price in the ETF space, with State Street Global Advisors and Franklin Templeton Investment among companies who have recently initiated fee cuts or introduced ultra-low-cost products.