DWS has slashed fees on 31 ETFs as it continues its bid to leapfrog its closest rival Amundi as Europe’s second-largest issuer.
The cuts will be felt across a combined €10bn of assets under management, the largest of which is the £2.5bn Xtrackers Eurozone Government Bond UCITS ETF (XGLE) which will be reduced from 0.15% to 0.09% in early December.
In addition to the 31 ETFs, the German asset-manager also reduced the fee by one basis point on its £2.4bn DWS IE Physical Gold ETC Securities (XDGU), creating the cheapest in the market.
Elsewhere, the total expense ratio (TER) on its £1.9bn Xtrackers MSCI Japan UCITS ETF (XMJP) will be reduced from 0.20% to 0.12%, while the £2.2bn Xtrackers US Treasuries UCITS ETF (XUTD) will be cut by one basis point to 0.06%.
The Xtrackers USD Overnight Rate Swap UCITS ETF (XFFE) will see its fees cut from 0.15% to 0.10%.
Some of the biggest reductions will be seen across its country-specific ETF range. The Xtrackers MSCI Brazil UCITS ETF (XMBR) will see a 40bps reduction to 0.25% while the Xtrackers MSCI Korea UCITS ETF (XMKO) will be reduced from 0.65% to 0.45%.
It said the changes were part of “ongoing optimisation” of its ETF product range as it looks to retake the position of Europe’s second largest issuer by 2025.
The firm has succeeded in closing the gap in recent months and in Q3 captured more than double Amundi’s inflows.
ETF fee wars have once again come to the fore in Europe following State Street Global Advisors’ cut fees on its SPDR S&P 500 UCITS ETF (SPY5), creating the cheapest S&P 500 ETF on the continent.
Michael Mohr, global head of Xtrackers products at DWS said: “Competitive fees as well as efficient index tracking and liquid exchange trading are the basis for the success of our ETFs with investors.
“We are therefore constantly reviewing where we can facilitate permanent fee reductions in order to provide attractive access to markets.”
Chart 1: Largest ETFs and biggest fee cuts
ETF | Old TER | New TER |
Xtrackers IE Physical Gold ETC Securities (XDGU) | 0.12% | 0.11% |
Xtrackers MSCI Japan UCITS ETF (XMJP) | 0.20% | 0.12% |
Xtrackers II Eurozone Government Bond UCITS ETF (XGLE) | 0.15% | 0.09% |
Xtrackers II US Treasuries UCITS ETF (XUTD) | 0.07% | 0.06% |
Xtrackers MSCI Brazil UCITS ETF (XMBR) | 0.65% | 0.25% |
Xtrackers MSCI Japan UCITS ETF CHF Hedged (XMCJ) | 0.40% | 0.25% |
Xtrackers MSCI Korea UCITS ETF (XMKO) | 0.65% | 0.45% |
Xtrackers MSCI World UCITS ETF GBP Hedged (XDWG) | 0.29% | 0.17% |
Xtrackers Stoxx Europe 600 UCITS ETF (XSX7) | 0.18% | 0.07% |
Xtrackers MSCI Europe Health Care ESG Screened UCITS ETF (DXSE) | 0.20% | 0.17% |
Xtrackers II ESG Global Aggregate Bond UCITS ETF EUR Hedged (XBAE) | 0.15% | 0.10% |
Xtrackers II Global Inflation-Linked Bond UCITS ETF EUR Hedged (XGII) | 0.25% | 0.20% |
Xtrackers II USD Overnight Rate Swap UCITS ETF (XFFE) | 0.15% | 0.10% |
Xtrackers II US Treasuries UCITS ETF (XUST) | 0.07% | 0.06% |
Xtrackers II US Treasuries 1-3 UCITS ETF (XUT3) | 0.07% | 0.06% |
