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Rise of active ETFs highlights looming prospect of dwindling fees

Active ETFs in Europe have so far launched with much lower fees than mutual funds, Morningstar analysis shows

The growing number of asset managers entering the active exchange traded fund arena in Europe is opening a debate on the revenues managers can generate from these products.

Over 90 per cent of assets in European exchange traded funds are managed passively, with a large part of the products’ growth linked to the low fees they typically charge.

However, the chief executive officer of Janus Henderson said earlier this year that the fees on active ETFs were “very different” from more well known passive products.

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