Forget No Fees. ETF Breaks Ground by Offering to Pay Investors
- Salt Financial plans to give away 50 cents for $1,000 invested
- Its strategy follows SoFi announcing a no-fee ETF last month
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Free is no longer cheap enough in the ultra-competitive market for exchange-traded funds.
Salt Financial, which currently runs one $10 million ETF, plans to woo buyers with a fund that will temporarily pay them to invest, according to regulatory filings. During the first year, holders will receive 50 cents for every $1,000 in a new low-volatility stock ETF -- until it grows to $100 million when the cash-back benefit will be capped and shared with all investors. The rebate is until at least April 2020, when a $2.90 management fee could kick in.