Smart beta ETF price war negative for active managers

A looming price war in the "smart beta" ETF space represents a negative for active asset managers, says a report published Thursday from Moody's Investor Services. The report notes that earlier this week, Goldman Sachs Asset Management announced it plans to launch a new smart beta ETF that will charge a management fee of just nine basis points (bps) — well below the fees charged by most funds in the sector. Most smart beta ETFs currently charge between 24 and 39 bps, according to the report.