Blackrock slashes ETF fees
Global fund manager, Blackrock, has slashed its exchanged traded fund (ETF) fees as institutions, individuals and financial advisers are increasingly putting ETFs at the centre of their investment portfolios.
Blackrock's iShares' business shaved its US range of ETF fees, three of which were cross listed on the Australian Securities Exchange (ASX). The S&P 500 ETF management fee dropped to 0.04 per cent (from 0.07 per cent), while the S&P mid-cap ETF and S&P small-cap ETF fell to 0.07 per cent, from 0.12 per cent.
Blackrock said it expected that low-cost ETFs would increasingly be used as active tools alongside high-conviction active funds in clients' portfolios, especially as the US Department of Labor's (DOL) fiduciary rule would come into force.
Head of iShares Australia, Jon Howie said: "Australian investors in these funds will benefit from this decision to reduce pricing. Long-term investors globally and in Australia are looking for great value at the centre of their portfolios".
Recommended for you
Bentham Asset Management has become the latest fund manager to expand its distribution team as it reports increased interest in its credit strategies.
L1 Capital, which is in talks to merge with Platinum Asset Management, has indicated it will be voting against a deal to convert a Platinum LIC into an ETF.
Evidentia Group has hired a head of quantitative investments who joins the investment firm and managed account provider from AMP.
Fidelity International has worked in tandem with Australian wealth manager Emanuel Whybourne & Loehr to launch an actively managed global equities strategy aimed at financial advisers.
