I have to say, and this is coming from a champion of passive funds, the two new active ETFs from Macquarie appear to be a game changer.
The management fee of .003% for the ASX fund is not only competitive with passive funds, but better compared to most.
I also think hanging their hat on performance fees - when they beat the ASX300 - is a strong sign they are backing themselves. Something most active managers would be too scared to do.
In summary, good on Macquarie. This is the only way active managers are going to turn the tide against passive, low cost products. I also think the fee structure will be the new benchmark.
I wasn't anticipating this style for another few years.
Anyway, I just wanted to share my thoughts - given I was thoroughly impressed with the two new products. I would encourage people to take a look - especially those who had given up on active management (me).
I sincerely hope this is not a classic bait and switch tactic, where they will lure people in - only to put up the fees at a later stage.
MQG Price at posting:
$193.34 Sentiment: None Disclosure: Not Held
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