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As I note in the FP today, Invesco Trimark has blurred the lines between mutual funds and ETFs with its new PowerShares Funds, which are available today. I suggest this may alter the landscape because it means mutual fund sales people licensed only to sell through the MFDA channel can now tell their clients they can now have ETFs: albeit ETFs that pay them a 1% trailer and defeats some of the purpose of true ETFs. But it's also interesting that those licensed via IIROC or the old IDA that could already sell ETFs and stocks and bonds directly can now sell these PowersShares Funds and collect a trailer fee that they can't get from Barclays or Vanguard (but can if they sell Claymore Advisor Class ETFs).
Some interesting things the new product can do that ETFs can't and vice versa but perhaps the net effect for consumers is good because it will put more fee pressure on the rest of the mutual fund industry?
Here's the piece, which is also on my blog:
http://www.financialpost.com/news-sectors/story.html?id=2227771
Some interesting things the new product can do that ETFs can't and vice versa but perhaps the net effect for consumers is good because it will put more fee pressure on the rest of the mutual fund industry?
Here's the piece, which is also on my blog:
http://www.financialpost.com/news-sectors/story.html?id=2227771