BlackRock and VanEck cut property and infrastructure ETF fees

blackrock ishares VanEck fees

11 July 2023
| By Laura Dew |
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BlackRock and VanEck have reduced fees on several of their ETFs.

From 6 July, BlackRock has reduced fees on its iShares Core FTSE Global Infrastructure (AUD Hedged) ETF and iShares Core FTSE Global Property ex Australia (AUD Hedged) ETF.

Both ETFs will reduce their fees from 20 bps to 15 bps as a way to ‘deliver greater efficiency and better value’ to its investors.

It follows a move earlier this year by the firm to lower the cost of its index exposures when it cut the price of its iShares Core Composite Bond ETF to just 10 bps. This fund was recently named winner of the Passive — Other Asset Class Fund of the Year at Money Management’s Fund Manager of the Year Awards.

Chantal Giles, head of wealth at BlackRock Australasia, said: “Australian advisers can keep more of their fee budgets to allocate to more tactical and granular ETF exposures or higher cost alpha-seeking or alternative strategies in the current higher-for-longer macro environment. 

“At the same time, it reduces the overall input costs associated with the delivery of financial advice. Ultimately, lower-priced core ETF exposures benefit all market participants and serve as a catalyst to drive further, long-term growth in the Australian ETP market, in line with other developed markets globally.”

Meanwhile, VanEck has reduced management fees on its VanEck FTSE Global Infrastructure (Hedged) ETF and VanEck FTSE International Property (Hedged) ETF.

As part of the fee review, this will see fees fall to 20 bps from 3 July.

“The new reduced fees will enable more investors to gain exposure to VanEck’s infrastructure and international property strategies,” Arian Neiron, chief executive & managing director — Asia Pacific, said.

“Investor interest in our infrastructure and international property funds has been strong this year and it’s not surprising given the reliable income stream IFRA and REIT offer investors. By reducing our management fees we are enabling more investors to gain access to the opportunity that these funds offer.”

Neiron added he expects the ETFs to be used as core exposures in portfolios as well as by those seeking market beta strategic asset allocation.

Last month, Vanguard announced it has slashed the management fee on its flagship Australian Shares Index ETF from 10 bps to 7 bps.

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