Vanguard’s Record Fee Cuts Put BlackRock, Invesco in a Tough Spot

What You Need To Know

• The move sent shock waves across asset management on Monday, dragging down BlackRock to its worst day since 2022.
• Fueling the angst is the fact that Vanguard isn’t under the same pressure to maintain margins as its competitors are.
• While rock-bottom fees produce brutal economics for ETF firms, investor demand tends to be highly concentrated toward the cheapest products.