LPL Financial LLC plans to reduce transaction costs by 45 percent on exchange-traded funds from several leading providers, the company announced.
Specifically, ETF transaction charges will drop from $9.00 to $4.95 on products from State Street, Invesco and WisdomTree. The new pricing will go into effect in this year’s second half.
LPL said it’s pursuing similar partnerships with other sponsors.
The products are offered on the independent broker-dealer’s Strategic Asset Management (SAM) and Strategic Wealth Management (SWM) platforms, rep-managed platforms designed for advisors leveraging the firm’s corporate, hybrid or RIA-only platforms.
The company said the ETF price reductions join other enhancements to its RIA platforms over the last year. That includes introducing a mutual fund no-transaction fee network to its SWM platform. Pimco was added to the network in April, joining 65 sponsors including AllianceBernstein, BlackRock, Columbia, Invesco, J.P. Morgan, John Hancock, Legg Mason, MFS, Natixis, Oppenheimer and Putnam.
And in January, fees were lowered to a flat eight-basis-point administrative fee for advisors with $25 million to $50 million in assets custodied on the SAM platform.