3 Firms Continue To Dominate The ETF Industry, But More Competition Is Heading Their Way

Friday, February 25, 2011 06:42
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3 Firms Continue To Dominate The ETF Industry, But More Competition Is Heading Their Way

Tags: ETFs

The number of exchanged-traded funds and exchange-traded notes has rocketed above 1,100 as more than 40 companies have gotten in on the action. Yet just three firms dominate the industry.

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Blackrock, State Street and Vanguard control 83% of the market, according to SmartMoney. Some analysts worry that’s a formula for high fees, even though fees have been coming down.
 

Soon it may be a moot point, as several other big asset management firms, including T. Rowe Price, have announced plans to introduce ETFs this year.
 

In the meantime, the parade of new ETF options continues unabated: Global X will introduce several new small-cap ETFs, and Teucrium Trading is launching a new crude oil ETF.
 

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