UBS pulls ASX listed ETFs

UBS will de-list its Australian exchange-traded funds (ETFs) in a strategic retreat from the burgeoning market, as $2 billion was wiped from the industry's funds under management in February.

"Insufficient scale"

"UBS pulling out of ETFs is not a surprise to us, as none of their ETFs got much traction and this wasn't a core part of the business," he told the Financial Review.



The Corona crash seems to push back the break even of the SELF ETF by at least a year, so you'd have to think that management is considering the same as UBS, they must at least be considering it before the next high annual fees are due around October.

There has only been 1% increase in units on issue in 3-4 months, but they need something like 100% increase in units on issue plus a market recovery to XJO ~7000 to reach break even. (Assuming $550k fees attributable to SWF to break even)

Break even in a year would require 2 big asks:
XJO recovery to 7000
Interest spiking, so units on issue doubling.

Otherwise would they want to keep running it at a loss for several years in the hopes of break even?

Luckily the rest of the business is looking strong, apart from RBA cuts.