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How low can ETF charges go?
A price war among exchange-traded fund providers looks imminent as French firm Lyxor has lowered fees on 12 of its products.
The firm says these ETFs will now be the cheapest in Europe with management fees of between 0.04% and 0.12%.
Lyxor, the asset management arm of French bank Societe Generale, claims the products are 40% cheaper than similar products offered by its rivals.
The company recently launched four new products on the London Stock Exchange including Core Morningstar UK ETF (LCUK) and Core Morningstar US Equity ETF (LCUS).
These funds track Morningstar UK and US equity indices respectively and both have 0.04% charges a year. (DS)