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BlackRock Flexes Its Muscles In Fee Battle, Cuts Core ETF Prices

BlackRock Flexes Its Muscles In Fee Battle, Cuts Core ETF Prices

In a move that will be felt across the exchange traded funds industry, particularly in Pennsylvania, BlackRock Inc.'s (NYSE: BLK) iShares unveiled a significant round of fee cuts for iShares core suite of ETFs.

BlackRock, the world's largest asset manager, launched the iShares core ETFs four years ago, targeting cost-conscious, long-term investors. Over the past several years, iShares has brought previously existing ETFs into the core suite while also adding new products to the group.

The iShares core lineup is now comprised of 22 ETFs and iShares, the world's largest ETF issuer, is lowering expense ratios on 15 of those funds.

  • The iShares Core S&P 500 ETF (NYSE: IVV) is now charging 0.04 percent a year, or $4 on a $10,000 investment, down from a previous fee of 0.07 percent.
  • The iShares Core S&P Mid-Cap ETF (NYSE: IJH) and the iShares Core S&P Small-Cap ETF (NYSE: IJR) are now charging 0.07 percent annually, down from 0.12 percent.
  • The iShares Core High Dividend ETF (NYSE: HDV) and the iShares Core Dividend Growth ETF (NYSE: DGRO) - two dividend ETFs - now have expense ratios of 0.08 percent, down from 0.12 percent.

Five of the international members of the iShares core lineup now have lower fees.

  • The iShares Core MSCI Total International Stock ETF (NASDAQ: IXUS) is now charging 0.11 percent annually, down from 0.14 percent.
  • The iShares Core MSCI EAFE ETF (NYSE: IEFA) has a new fee of 0.1 percent after previously charging 0.12 percent.

Two of the iShares international core ETFs – the iShares Core MSCI Europe ETF (NYSE: IEUR) and the iShares Core MSCI Pacific ETF (NYSE: IPAC) – are now charging 0.1 percent per year after charging 0.12 percent. The iShares Core MSCI Emerging Markets ETF (NYSE: IEMG) has a new fee of 0.14 percent, down from 0.16 percent.

Five of the iShares core fixed income ETFs also have lower expense ratios.

Three of those ETFs – the iShares Core Total USD Bond Market ETF (NYSE: IUSB), iShares Core 1-5 Year USD Bond ETF (NYSE: ISTB) and the iShares Core 10+ Year USD Bond ETF (NYSE: ILTB) – are charging 0.08 percent annually after carrying an annual fee of 0.12 percent.

  • The iShares Core U.S. Aggregate Bond ETF (NYSE: AGG), the largest fixed income ETF in the US, saw its fee pared to 0.05 percent from 0.08 percent.
  • AGG's international equivalent, the iShares Core International Aggregate Bond ETF (BATS: IAGG), is now charging 0.11 percent a year, down from 0.15 percent. IAGG is just 11 months old and already has more than $317 million in assets under management.

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