State Street

Asset managers have felt the pressure as volatility roils global markets and investors continue to demand low-fee funds that require far fewer workers.

As the demand for more specialized products increases, the largest ETF providers are continuing their race to the bottom.

The SPDR fund recorded its biggest outflow in 18 months as oil fell below $52 a barrel.

The reduction, which includes 15% of senior management, is part of a larger effort to cut costs and automate more business.

Nearly all of the outflows came from mutual funds and ETFs that posted losses.

BlackRock will see the largest reduction to its workforce since 2016.

The firm’s new CEO Ronald O’Hanley is pushing to reduce expenses, automate more functions and simplify organizational structure.

Even worse, those at the bottom of the pack averaged higher expense ratios.

Although its fees are higher than other thematic offerings, similar products from Ark Investment Management have outpaced their peers. Plus; other launches.

An index of asset managers and custody banks has lost almost a quarter of its value this year.