A busy period for the upper ranks of ETF issuers saw three leadership reshuffles and potential changes of trajectory for Northern Trust Asset Management (NTAM), State Street Global Advisors (SSGA) and Global X.
The future of NTAM’s European business is being called into question following the departure of EMEA head Marie Dzanis along with a number of other senior staff.
Following the news, the firm shut its two emerging market ETFs, having launched just five ETFs since entering Europe in March 2021.
Elsewhere, SSGA has promoted Ann Prendergast to EMEA head after 23 years at the firm following the retirement of former EMEA head Rory Tobin in June.
Finally, Global X CEO Luis Berruga departed the firm after almost 10 years for personal reasons. He will be replaced by interim CEO Thomas Park, who currently heads up the US arm of parent company Mirae Asset.
Fee cuts become flows
Elsewhere, SSGA’s SPDR S&P 500 UCITS ETF (SPY5) welcomed €1.1bn of inflows since its total expense ratio (TER) was cut from 0.09% to 0.03% last month, to become Europe’s lowest-fee ETF.
The move shows fee compression is still on the agenda for large issuers – even within the broad market exposures – and investors are watching on eagerly.
Large issuers enter carbon market
Finally, competition heats up in the carbon allowances space with DWS launching a spot carbon exchange-traded commodity (ETC).
DWS’s entrant undercuts the fee on the existing physically replicating ETC from SparkChange by 10 basis points – raising the question of where smaller issuers can carve out a niche, if large issuers continue imitating their innovations.
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