FT News Briefing BlackRock and Vanguard duke it out over ETF market
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Jan 3, 2024 Russia launched a second wave of airstrikes on Ukraine, escalating tensions in the region. In Israel, political divisions are deepening following a controversial court ruling on judiciary reforms. Meanwhile, the U.S. exchange-traded fund market is seeing fierce competition as Vanguard challenges BlackRock's long-time dominance. As investor preferences shift towards lower-cost options and active ETFs, the dynamics are changing rapidly, reshaping the financial landscape.
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Israeli Supreme Court Ruling
- Israel's Supreme Court struck down a law limiting its judicial review power, sparking protests and debate.
- This ruling asserts the court's authority over quasi-constitutional laws, raising concerns about the country's future.
BlackRock's ETF Market Share Erosion
- BlackRock's dominance in the U.S. ETF market is shrinking due to Vanguard's rising popularity and smaller rivals.
- Vanguard's broad-based, low-cost ETFs are attracting investors, while BlackRock diversifies into thematic areas like Bitcoin.
Reasons for BlackRock's Decline
- Vanguard's cheaper ETFs attract investors seeking broad market exposure.
- Smaller firms are carving niches with active ETFs and specialized strategies.