ETF Market Fee Competition and Strategic Shifts
In the recent ETF market, fee competition has intensified, prompting financial regulators to request that management companies submit the cost of each product. This move aims to prevent companies from making excessive profits. However, questions arise about whether regulatory intervention in market price competition is justified, given that prices are determined by the laws of supply and demand.
Amidst this competitive market environment, Mirae Asset is adopting contrasting strategies in its asset management and securities divisions. Mirae Asset Management announced plans to reduce management fees for high-risk ETFs, aiming to expand its market share. On the other hand, Mirae Asset Securities declared a halt in recommending high-risk ETF products, focusing instead on investor protection. This strategic adjustment appears to be part of an effort to encroach on Samsung Asset Management's market share.
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Financial Supervisory Service suggests assigning 'cost price' to financial product ETFs – Korea Economic DailyFSS urges assigning cost price to financial product ETFs, calls for restraint in fee reductions, warns against hindering market price competition - Reporter Suji Na, Securities Department
Going Their Own Way with High-Risk ETFs…Mirae Asset Securities "Not Recommended" VS Mirae Asset Management "Lowers Fees" - Digital TimesThe two main subsidiaries of Mirae Asset Group, Securities and Asset Management, are focusing on 'investor protection' and 'market share..
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