During BlackRock’s recent third-quarter earnings call, CEO Larry Fink hinted the asset manager was seeing investors move into its iShares funds that track MSCI indices after Vanguard decided to drop the benchmark provider from its ETFs.
“We are seeing flows into our existing products, because of the changes of index providers with our competitor,” Fink said.
“The one thing that people are failing to look at … is institutions by and large want to use the MSCI index,” he added. [The Phony ETF Fee War?]
Earlier this week, BlackRock launched iShares Core MSCI Emerging Markets ETF (NYSEArca: IEMG).
The new ETF has an expense ratio of 0.18% and its underlying portfolio will be similar to EEM. [BlackRock Lists Four ‘Core’ iShares ETFs]