The US Department of Labor's new fiduciary rule is having its intended effect on managers, driving money out of actively managed funds and into ETFs. This is because the best interest rule favours ETFs, which are cheaper and transparently priced.
Scale before profits comes to fintech
ETF newcomer First Ascent Asset Management is using fintech to automate its back-office and charging a flat fee of $500 for any portfolio. The company is the best example yet of a "scale before profits" business in passive management.
A tech ETF called FANG
A new actively managed ETF charging more than double your average passive ETF called FANG has listed on NYSE. The fund is based around Facebook, Amazon, Netflix and Google - hence the name.