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UBS enters ETF price war

UBS enters ETF price war

UBS Asset Management has joined the protracted ETF price war by dropping the fee on its UBS ETF Barclays TIPS 1-10 Ucits ETF.

The firm cut five basis points off the total expense ratio (TER) of the fund, reducing it from 0.2% to 0.15% on the unhedged share class, and from 0.25% to 0.2% on the hedged shares classes.

UBS attributes the fee reduction to the economies of scale achieved through its growth in assets—the ETF has attracted inflows of $470 million (£366 million) with total assets now over $600 million.

Clemens Reuter, global head of investment specialists passive & ETFs, said: ‘After an extended period of low interest rates there is growing evidence in markets of inflationary pressures starting to build, particularly in the US.

‘With this innovative fixed income product, our clients are able to protect long-term purchasing power and gain access to an asset class that compounds the real rate of return.’

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