BlackRock has lowered fees on these six ETFs:
- iShares Core S&P 500 ETF (NYSEArca IVV)
current price 0.09%
new price 0.07% - iShares Core S&P Total U.S. Stock Market ETF (NYSE: ISI) – will trade under new ticker ITOT
current price 0.20%
new price 0.07% - iShares Core S&P Mid-Cap ETF (NYSEArca: IJH)
current price 0.20%
new price 0.15% - iShares Core S&P Small-Cap ETF (NYSEArca: IJH)
current price 0.20%
new price 0.16% - iShares Core Long-Term U.S. Bond ETF (NYSEArca: GLJ) – will trade under new ticker ILTB, changing tracking index to Barclays US Long Government/Credit Bond
current price 0.20%
new price 0.12% - iShares Core Total U.S. Bond Market ETF (NYSEArca: AGG)
current price 0.20%
new price 0.08%
These are the new ETFs expected to begin trading on or about Oct. 22:
- iShares Core MSCI Total International Stock ETF (IXUS)
- iShares Core MSCI Emerging Markets ETF (IEMG)
- iShares Core MSCI EAFE ETF (IEFA)
- iShares Core Short-Term U.S. Bond ETF (ISTB)
BlackRock also said it is integrating the iShares and BlackRock U.S. retail sales teams.
The firm’s announcement comes after Vanguard earlier this month said it plans to change the benchmarks at several of its ETF in a move designed to allow Vanguard to cut ETF fees. [Vanguard Changing Indices for Several ETFs]
In late September, Schwab unveiled fee reductions in its family of ETFs. [Schwab Takes the Lead in ETF Price War]
BlackRock’s response to its competitors lowering ETF costs wasn’t unexpected. BlackRock CEO Larry Fink last month said the firm planned to slash the management fees charged by some of its core-strategy ETFs before the end of the year. [iShares to Cut Some ETF Fees in Fourth Quarter]
BlackRock is the largest ETF manager and has attracted $50 billion in net new assets year to date to lead the industry. However, Fink in September acknowledged that iShares was losing assets in large, liquid funds to lower-priced ETFs managed by Vanguard. [BlackRock Fires Latest Salvo in ETF Fee War]