Investing.com - The shares of Hong Kong-listed insurance giant Ping An Insurance (HK:2318) jumped almost 3% on Monday after the company said it is launching a low-fee exchange-traded funds (ETF) product.
According to a prospectus and industry data that was cited by Bloomberg, Ping An Fund Management Co., the fund arm, will offer an ETF tracking ChiNext startup stocks with a management fee of 0.15%, far lower than the industry average of 0.5%. Its 0.05% custodian fee is also just half of the 0.1% average.
“Technological upgrades and institutional demand prompted us” to introduce the product, the Ping An unit said in an e-mailed statement that was cited by Bloomberg. ETFs with “appropriate, reasonable fees” are more attractive in the long term and support market stability, it said.
The move echoed the approach of Vanguard Group, which tripled its ETF-market share to 26% in the U.S. over the course of a decade by cutting costs.
Vanguard has now amassed more than $5 trillion of client assets after offering low-cost funds to millions of Americans, Bloomberg noted.