First negative-fee ETF blasted as a 'gimmick'

Salt Low truBeta US Market ETF

The Securities and Exchange Commission (SEC) has given boutique ETF provider Salt Financial the go-ahead to launch the world's first negative-fee ETF in the US.

Salt Financial has introduced the negative-fee structure for the recently launched Salt Low truBeta US Market (LSLT) ETF, using the price incentive to meet arbitrary levels for inclusion on advisory and brokerage platforms.The fee structure will be in place until the fund reaches $100m in assets. The boutique applied to list the negative-fee ETF in March 2019 and it remained uncertain throughout the 60-day review period whether it would be approved of the new structure. As reported in the Financial Times, the negative-fee ETF structure applies a 34 basis point fee waiver to the fund'...