UBS Global Asset Management has reduced the charges across its exchange traded funds (ETFs) range, as pricing pressures on ETFs escalate.
The group has reduced fees on all of its A share class ETFs, effective from today, in some cases by as much as 25bps.
The largest price reduction was on the UBS MSCI Emerging Markets UCITS ETF, where the total expense ratio (TER) has been reduced from 0.7% to 0.45%.
Pricing on the most popular ETFs, such as the S&P 500 ETF, has become more competitive as result, down from 0.25% to 0.2%, while the TER on both the MSCI USA and the FTSE 100 UCITS ETFs has been cut from 0.35% to 0.2%.
The group said the move "underlines its strong commitment to providing best-in-class service to ETF investors at the most competitive prices".
In the interests of transparency, the group also discloses a pre-defined ‘drag level' on its swap-based ETFs, which includes all costs additional to the TER, allowing investors to know in advance exactly how much the ETF will lag the benchmark due to costs.
UBS' ETF business is now the fourth largest ETF provider in Europe, behind BlackRock's iShares, with approximately £8.6bn in assets under management.
iShares is the largest ETF provider in the world, with more than 440 funds and over $600bn (£376bn) in assets under management.
Examples of UBS ETFs new charges from 16 September 2013:
|UBS ETF (LU) FTSE100 UCITS ETF||new TER of 0.20% (was 0.35%)|
|UBS ETF (LU) MSCI World UCITS ETF||new TER of 0.30% (was 0.45%)|
|UBS ETF (LU) MSCI Japan UCITS ETF||new TER of 0.35% (was 0.55%)|
|UBS ETF (LU) MSCI Emerging Markets UCITS ETF||new TER of 0.45% (was 0.70%)|
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