An ETF that pays you to invest just hit the market

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The Low TruBeta U.S. Market ETF brands itself as a low-volatility fund that pays investors to put money in, and ETF experts can't discount its influence.

Low-cost exchange-traded funds have been gaining popularity in the ETF world, but one new product is taking that trend to the next level.

Right now, the ETF charges investors 29 basis points per year to invest. But it has lofty goals, according to SEC filings: if approved, it'll charge zero fees for the first $100 invested, and then will pay investors 5 basis points for every $10,000 they put in. And while ETF experts aren't all on board with the low-fee fad, few can deny the influence these funds have had in terms of raising interest and awareness.

"If ... they hit that $100 million mark very quickly because they're financing this, good for them, because now they're going to be available on platforms that you normally can't get available on — Morgan Stanley, Merrill Lynch — unless you have $100 million," Lydon said.

 

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