U.S. Brokers Could Seek Distribution Fees from ETF Managers as Zero-Commission Trading Erodes Revenue
U.S. brokerage firms and custodians may press exchange-traded fund managers for distribution payments to offset revenue declines tied to commission-free trading and the shift of assets from mutual funds into ETFs, J.P. Morgan says. The bank estimates the U.S. ETF management fee pool at $21 billion and suggests brokers could aim to capture 10% to 20…