This negative-fee ETF will actually pay investors to invest ... at least at first
While the biggest exchange-traded fund shops such as BlackRock and Vanguard battle for fresh money by undercutting each other on fees, small and relatively new entrants of ETF-land are going whole hog.
Salt Financial, an ETF shop with less than two years under its belt, filed on Tuesday to launch an ETF that will actually pay investors for investing in it, at least at the start. The negative-fee ETF is finally here, making online lender Social Financial or SoFi’s zero-fee ETFs old news. var mobBreakpoint=661; addMobClassToRelatedInset; whenAvailable { $.resize { addMobClassToRelatedInset; }); function defer { if !==null) { method; } else { setTimeout { defer }, 100); } } defer { var curr_article_SBID=document.querySelector.getAttribute; var inputs=document.getElementsByClassName; for ) { targetEl.classList.remove; } }; function getWidth { var width=0; var w=window, d=document, e=d.documentElement, g=d.getElementsByTagName[0], x=w.innerWidth || e.clientWidth || g.
For every $10,000 invested in Salt, an investor could get $5 back , or end up paying nearly $30. There is also no benefit to being first in line, Tony Barchetto, Salt Financial founder and chief investment officer told Barron’s. If the ETF were to amass $200 million in its first year of launch, all investors would pay a blended ratio—the first $100 million at 0.05% of assets and the next $100 million at 0.29% of assets.
In essence, the more successful the ETF is in gathering assets, the less likely its investors will see the full cash-back reward. Investors would be justified in being a bit salty about it, but that is a marketing move a small-fry in ETF-land has to make to get noticed.
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