RetireJapan

Commission-free trading for 1800 ETFs: (mostly non-Vanguard ETFs)

https://www.cnbc.com/2018/07/02/vanguar ... yptr=yahoo

And it looks like others may follow suit.

The article mentions wanting to create funds with no management costs.

I mean that's great, but what then is the incentive for the fund manager? What are they getting out of this?

jcc wrote: ↑Fri Jul 06, 2018 3:58 am The article mentions wanting to create funds with no management costs.

I mean that's great, but what then is the incentive for the fund manager? What are they getting out of this?

Maybe they're just paid a good salary to do their fund management work?
(I don't know much about this stuff at all, just throwing that out there to hopefully be corrected and learn something!)

jcc wrote: ↑Fri Jul 06, 2018 3:58 am The article mentions wanting to create funds with no management costs.

I mean that's great, but what then is the incentive for the fund manager? What are they getting out of this?

I think the idea is to upsell people with more expensive products once they are locked into the ecosystem

Fund managers can make money even if they don't charge you a fee for or even for managing a mutual fund. They could sell their order flow for the purchases or sales they make within the mutual fund. They can lend stocks held in the fund to short sellers. Also simply having a large mutual fund is an asset. Let's say RetireJapan starts a 0 fee mutual fund and attracts a billion yen of investors in that fund. RetireJapan owns the fund and also owes the investors every yen of asset value in the fund. However, RetireJapan could then sell the company that manages that billion yen mutual fund to rival mutual fund company TokyoWart. That actually has some value to TokyoWart and he would (theoretically) pay RetireJapan to become the manager. That is what divides Vanguard (which technically is owned by its investors) from mutual funds like Fidelity (which is owned by the Johnson family and a bunch of Fidelity employees). Just owning the fund management company has value and the value is greater when there are more assets under management.

TokyoWart wrote: ↑Sat Dec 08, 2018 2:04 am Let's say RetireJapan starts a 0 fee mutual fund and attracts a billion yen of investors in that fund.

We can dream!

Good news if you have the luxury of being able to use Vanguard's investment platform.