FYI: Ping An Insurance (Group) Co., the Chinese insurance giant, is trying the approach that Vanguard Group brought to the U.S. -- slashing costs for exchange-traded funds.
Ping An Fund Management Co., the fund arm, is launching an ETF tracking ChiNext startup stocks on Monday with a management fee of 0.15 percent, a quarter of the average for peer products. Its 0.05% custodian fee is less than half of the average, according to a prospectus and industry data.
Funds are chasing a larger share of a fast-growing $82.8 billion market. China has yet to see the intense price competition for ETFs that’s been occurring in other parts of the world, and there are no dominant players. Providers typically charge a 0.5 percent management fee and 0.1 percent custodian fee -- notably higher than the levels in the U.S., according to a report from SWS Research in January.
Regards,
Ted
