Salt Financial initiates race to negative fees

It takes confidence in your products to slash fees to compete with the market, but it takes even more confidence to pay investors to put their capital in your ETF. Salt Financial has done just this.

Salt Financial plans on eliminating its management fees for its recently launched Salt Low truBeta US Market ETF (LSLT) and compensating investors for buying the ETF, according to a recent filing with the Securities and Exchange Commission in the US.

Investors which buy LSLT will have the 0.29% management fee waved and then receive a 0.05% contribution until at least 30 April 2020 or until the first $100m in assets invested is reached.

SoFi, which filed for a zero fee ETF last month, used a similar tactic of offering zero fees until at least 27 March 2020. Not quite zero but edging ever closer include Vanguard which slashed one or two bps for 10 ETFs and Euronext which slashed fees to boost European ETF activity.

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