BlackRock, the new owner of the iShares line of exchange traded funds (ETFs), has made its priority gathering new retail business. It plans to target the market in a variety of ways, including adding new funds and even by potentially cutting fees.
BlackRock says it’s making new retail business a big priority by addressing fund performance problems, expanding the lineup of offerings and even possibly taking the scissors to fees in order to be competitive. [How the competition is challenging ETF fees.]
Joe Morris for Ignites reports that Laurence Fink, BlackRock’s CEO, says that the firm’s gargantuan size may put it in position to lower fees for investors. BlackRock currently has $3.2 trillion in assets.
New ETFs focused on retail investors are also in the production process. About 90% of the firms’ assets under management currently belong to institutional clients. This change in the targeted business clientele is the the key for sustained growth in the future, says Global Client Group head Robert Fairbairn. [Active ETFs are attracting many providers.]
For more stories about new ETFs, visit our new ETFs category.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.