New ETF Providers May Change the Industry


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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , ETFs

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