Meanwhile, on October 22 the firm is introducing four new ETFs - three international ETFs and one short-term bond ETF. Bond ETF to the Barclays US Long Government/Credit Bond Index from the Bank of America Merrill Lynch 10+ Year US Corporate & Government Index. The firm also changed the index for the iShares Core Long-Term U.S. That is also when the new fees take effect. Stock Market will have a new ticker, ITOT, effective October 17. Bond Market ETF and the iShares Core Short-Term U.S. LOWER FEESīlackRock has cut fees on a total of six ETFs: the iShares Core S&P Total U.S.Stock Market ETF ISI.P, the IShares Core S&P 500 ETF IVV.P, the iShares Core S&P Mid-Cap ETF IJH.P, the iShares Core S&P Small Cap ETF IJR.P, the iShares Core Total U.S. “This lets BlackRock have an incredibly cheap emerging markets ETF in the marketplace, but not cannibalize these sticky assets in a heavily-traded fund,” said Dave Nadig, director of research at IndexUniverse. īut BlackRock's decision to introduce a new, broader emerging markets ETF, instead of cutting fees on its existing $37.3 billion iShares MSCI Emerging Markets Index Fund EEM.P surprised some analysts. Last month, Vanguard’s incoming chief investment officer Tim Buckley told Reuters that if competitors cut costs, they should expect Vanguard to cut even further. Vanguard spokesman John Woerth said these new fee reductions can be attributed to “the Vanguard effect,” of lowering costs in a product category or a market in which Vanguard competes. 10 percent.Įxchange-traded funds are baskets of securities like mutual funds, but they trade throughout the day on exchanges like individual securities.īlackRock's move comes as low-cost competitor Vanguard Group has gained market share from BlackRock and competitor Charles Schwab Corp SCHW.N has slashed fees on some of its ETFs, in some cases to pennies. Bond Market ETF AGG.P from 0.20 percent to 0.08 percent, undercutting competitor Vanguard Group's comparable ETF, the $17.6 billion Vanguard Total Bond Market ETF BND.P, which costs. Of its largest ETFs, the most notable cut is in the $15.72 billion iShares Core Total U.S. Stock Market ETF ISI.P, where fees are being trimmed from 0.20 percent to 0.07 percent. The most significant fee cut on an existing ETF is on BlackRock's $362.5 million iShares Core S&P Total U.S. The firm's new ETFs include the iShares Core MSCI Emerging Markets ETF, which costs 0.18 percent, far less than the firm's existing iShares MSCI Emerging Markets ETF EEM.P, which costs 0.67 percent and will still be available to investors. A BlackRock building is seen in New York June 12, 2009.
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