A significant shift in ETF investment patterns reveals that 60% of ETF assets are now allocated to funds with fees of 10 basis points or less, yet these funds contribute only 16% to the industry's revenue. In contrast, ETFs with fees of 51 basis points or more, which represent just 8% of assets, account for nearly a third of the revenue. This disparity is driving a surge in the launch of new and diverse ETF products as firms seek to capitalize on higher revenue opportunities.
Low-Cost ETFs Dominate Assets but High-Fee Funds Drive Revenue
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