ETF Industry Giants Grapple With Product Losses Amid Ongoing Fee War

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Fee cuts on specific products have exemplified this issue. State Street’s SPDR Portfolio High Yield Bond ETF (SPHY) and SPDR Portfolio S&P 500 ETF (SPLG), along with Schwab Asset Management’s fixed-income ETFs, have all been affected.

However, according to Bloomberg Intelligence, these asset managers may have a potential solution to offset these losses. They could implement higher fee strategies like thematic funds or actively managed ETFs. Such strategies could contribute to their estimated revenue, providing a possible countermeasure against the current financial pressures they face.

As the fee war continues to unfold within the ETF industry, it remains to be seen how these major entities will navigate these challenges and what strategies they will employ in the coming period.

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