The fee cuts may be a tactical way for BlackRock to position its ETFs as cheap fund alternatives in response to the changing DOL rules that will shine a light on the high costs associated with actively managed funds.
In the past couple of years, investors have increasingly turned to cheaper options to gain long-term exposure to various market segments.
Nevertheless, EEM is still a relevant investment as its vast liquidity and tight bid/ask spreads attract large institutional traders whom care more about executing large bets quickly than the long-term cost of holding the fund.
“Emerging markets are right now 15 pct below secular resistance which comes in at 42 points in EEM (the best known Emerging Markets ETF). If the 42 level would be broken, potentially in a couple of months, we would see an extremely bullish period for emerging markets,” adds ETF Daily News.
For more information on the ETF market, visit our ETF performance reports category.
Tom Lydon’s clients own shares of EEM.