The iShares core suite of ETFs is set to expand today with the debuts of the iShares Core U.S. REIT ETF (USRT) and iShares Core 5-10 Year USD Bond ETF (IMTB). Both of the funds will come with a low 0.08% expense ratio.[related_stories]
USRT will replace the iShares Real Estate 50 ETF (NYSEArca: FTY), which tracks 50 of the largest U.S. REITs and has a 0.48% expense ratio. Additionally, the new real estate ETF will track the FTSE NAREIT Equity REITs Index, a cap-weighted index designed to measure the performance of U.S. listed equity real estate investment trusts, excluding timber, infrastructure and mortgage REITs.
“A rule announced by the Labor Department in April and effective next year sets a so-called fiduciary standard for financial brokers who sell retirement products, requiring them to put clients’ best interests ahead of their own bottom line,” reports Reuters.
A recent ETF Trends and BNY Mellon research study on the impact of the new DOL rules on the ETF industry also found that the majority of surveyed financial advisors expect to raise ETF allocations in response to the new DOL rules, citing low fees as a main factor.
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