Industry Updates

Lyxor cuts fee on Nasdaq 100 ETF

Reduced the TER by 8bps

George Geddes

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Lyxor has reduced the total expense ratio (TER) on the Lyxor Nasdaq 100 UCITS ETF (NASL) from 0.3% to 0.22%.

Tracking the Nasdaq 100, this fee cut makes NASL the cheapest ETF in Europe with this exposure.

Lyxor has underpriced Amundi's similar product, the Amundi ETF Nasdaq 100 UCITS ETF (ANXG), which charges 0.23%.

The French asset manager has been enabled to reduce the fees for NASL by the economies of scale resulting from the merger between the Lyxor and Commerzbank ETF ranges.

NASL has €1.3bn in assets under management (AUM), meaning the fee cut will cost the firm roughly €10.4m a year in revenue.

Notably, Invesco and BlackRock also have ETFs that track the Nasdaq 100 with greater TERs and larger AUM.

The $5.4bn Invesco EQQQ Nasdaq 100 UCITS ETF (EQQQ) has a TER of 0.3% while the $6.2bn iShares Nasdaq 100 UCITS ETF (CNX1) charges 0.33%.

Société Générale prepares for Lyxor sale – reports

Chanchal Samadder, head of product strategy at Lyxor, commented: "Through this, ETF investors can invest in some of the most innovative companies in the world in a simple, transparent and cost-effective way ".

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