What started out as a positive move for investors turned out to be a nightmare for ETF provider PureFunds. In June, the company announced that it was dropping the expense ratio on its most popular product, the PureFunds ISE Cybersecurity ETF (HACK) from 0.75% to 0.60%. The move was made in response to the industry-wide trend of lower investment management fees and to match the expense ratio of the fund’s primary competitor, the First Trust Nasdaq Cybersecurity ETF (CIBR). For its trouble, PureFunds got sacked by ETF Managers Group, the ETF services provider and issuer of HACK, and will no longer be affiliated with the Cybersecurity ETF and five other PureFunds ETFs.
The exact nature of the dispute in question is still unclear (PureFunds, for its part, is filing a lawsuit against ETFMG) but it’s rumored that a disagreement over the fee reduction may be the cause. While more information on this will surely surface over time, the bottom line now is that the PureFunds ISE Cybersecurity ETF becomes the ETFMG Prime Cyber Security ETF with the same ticker symbol.
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