What the Lyxor takeover means for investors

More and more investors are trying to spice up their savings with passive index funds. Two French providers are now merging their business. This also has an impact on Deutsche Bank.

New power on the ETF market: headquarters of the Amundi fund company in Paris

BExchange-traded index funds (ETF) are the greatest success story in investment over the past few decades. For years, investors have been investing billions in the affordable funds, which simply track a stock index without active fund management. The longer the period of low interest rates and the high mood on the stock markets lasts, the more investors get the taste for better returns on their savings in this way: According to figures from the analysis company ETFGI, $ 763 billion flowed into listed index products around the world; as much as never before.

With the planned takeover of the French ETF house Lyxor, the French fund company Amundi will now become the second largest provider of index funds in Europe and relegate the Deutsche Bank subsidiary DWS to third place with its ETF brand Xtrackers. That should also have implications for investors. Ali Masarwah from the fund analysis company Morningstar expects an even fiercer price war than before – in other words, further falling fees for investors. “Competition stimulates business and that is always good for investors,” says Masarwah in an interview with the FAZ. The two fund companies are likely to merge many of their ETFs, which should also lead to lower costs.