The battle for ETF investors continues, this time with
BlackRock (
BLK
) introducing a revamped ETF lineup and fee reductions.
The investment firm created the iShares Core Series, a suite of 10
U.S.
ETFs
designed for the needs of long-term, buy-and-hold investors.
"As we look to build on our market-leading position in the ETF
industry, we are taking a number of steps to further bolster our
value proposition for investors, with an initial focus on the
United States," said Mark Wiedman, Managing Director and Global
Head of iShares. "The combination of our iShares Core Series
targeting buy-and-hold investors and a campaign to refresh the
powerful iShares brand - supported by what will now be the
industry's largest U.S. retail sales force - are key components of
our broader plan to drive even stronger growth in the U.S. and
globally."
Widely held ETFs like the iShares Core S&P 500 ETF
(NYSEARCA:IVV) and the iShares Core Total US Bond Market ETF
(NYSEARCA:AGG) will see their annual expense ratios drop to 0.07%
and 0.08% respectively on October 17.
The iShares Core Series is composed of four new and six existing
funds, designed specifically with long-term buy-and-hold investors
in mind. The iShares Core Series consists of the following
funds:
U.S. Equities
• iShares Core S&P Total U.S. Stock Market ETF (
ITOT
) (previously ISI)
• iShares Core S&P 500 ETF (
IVV
)
• iShares Core S&P Mid-Cap ETF (
IJH
)
• iShares Core S&P Small-Cap ETF (
IJR
)
International Equities
• iShares Core MSCI Total International Stock ETF**
(IXUS)
• iShares Core MSCI Emerging Markets ETF** (IEMG)
• iShares Core MSCI EAFE ETF** (IEFA)
U.S. Fixed Income
• iShares Core Total U.S. Bond Market ETF (AGG)
• iShares Core Long-Term U.S. Bond ETF (ILTB)* (previously
GLJ)
• iShares Core Short-Term U.S. Bond ETF** (ISTB)
*Beginning on or around Tuesday, October 23, 2012, (ILTB) will
track a new underlying index, the Barclays US Long
Government/Credit Bond Index and will cease to track the B of A
Merrill Lynch 10+ Year US Corporate & Government Index.
**These Funds are expected to begin trading on or about October 22,
2012
Thus far this year, asset flows away from stock mutual funds
hasn't stalled ETF flows. The iShares ETFs have attracted $50
billion in net new assets year to date, as of Sept. 30, more than
any other provider. Also, BlackRock projects the US fixed income
ETF category will likely grow to $1.4 trillion in assets over the
next decade, compared with $222 billion today.
Last month, the company launched the iShares MSCI Frontier 100
Index Fund (NYSEArca:FM), which tracks stocks from micro-emerging
market countries like Argentina, Bangladesh, Croatia, Estonia,
Jordan, Kazakhstan, Kenya, Kuwait, Lebanon, Mauritius, Nigeria,
Oman, Pakistan, Qatar, Romania, Serbia, Sri Lanka, Ukraine, the
United Arab Emirates, and Vietnam.
FM charges 0.79% in annual expenses.
The company also integrated its iShares and BlackRock U.S.
retail sales teams, creating the largest retail field force in the
U.S. asset management industry, to offer financial advisors and
distribution partners a fully integrated combination of index and
active products and solutions for today's investors.
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