Source offers some of the lowest management fees in European ETFs /etps

Source, an investment firm and a leading provider of Exchange Traded Products (ETPs), offers some of the most competitively priced core ETP exposure including S&P500 and Eurostoxx 50 at 5bps p.a. MSCI Europe at 20bp p.a. and Physical Gold at 29bp p.a…….

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Today, all of the firm’s core beta benchmarks are either the cheapest in Europe or extremely competitive versus their peers.

“While Source is most widely recognised for delivering innovative funds, we also believe it is important for our investors that we provide cost effective exposure to core benchmarks,” explains Michael John Lytle, Chief Development Officer. “The message has been clear, investors are after lower headline management fees in addition to performance vs. the index. Last year, for instance, we reduced the fee on the Source S&P 500 UCITS ETF, making it one of the lowest cost European ETFs on that benchmark. Unsurprisingly, we haveseen significant inflows to the fund.”

Fees are only one factor, however, and Source recognises the importance of a fund’s performance net of all costs. The changes made to the Source S&P 500 UCITS ETF turned it into the best performing fund versus its peers in 2014, and it went on to beat the index by an annualised 0.26%, net of fees, to the end of the year. The Source EURO STOXX 50 UCITS ETF has also been a strong performer relative to its benchmark. In 2014, the fund delivered outperformance of the index by 0.39%, net of all costs.[1]

Source offers exposure across most major asset classes and across the value spectrum. Source has 95% of all the actively managed ETF assets in Europe and was one of the first providers in Europe to offer ‘smart beta’ products. Source ETFs are available on the London Stock Exchange, Deutsche Borse (Xetra), SIX Swiss Exchange and/or Borsa Italiana.

Market exposure / FundCurrent annual management fee (%)Average competitor fee (%)
Source EURO STOXX 50 UCITS ETF0.05%0.19%
Source MSCI Europe UCITS ETF0.20%0.32%
Source STOXX Europe 600 UCITS ETF0.19%0.21%
Source FTSE 100 UCITS ETF0.20%0.29%
Source S&P 500 UCITS ETF0.05%0.19%
Source MSCI Japan UCITS ETF0.40%0.50%
Broad developed markets
Source MSCI World UCITS ETF0.35%0.40%
CSOP Source FTSE China A50 UCITS ETF0.99%1.07%
Broad emerging markets
Source MSCI Emerging Markets UCITS ETF0.45%0.62%
Broad commodities
Source Physical Gold ETC (P-ETC)0.29%0.38%


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