BlackRock has reduced prices across its growing suite of US iShares Core exchange traded funds (ETFs).
Institutions, individuals and financial advisers are increasingly putting low-cost ETFs at the centre of their long-term investments.
Now, with the Department of Labor (DoL) fiduciary rule coming into force, financial advisers are sharpening their focus on the quality and cost-efficiency of funds.
BlackRock expects these advisers will use ETFs more and more as active tools and alongside high-conviction active funds to build better portfolios for clients. It also expects financial advisers will increasingly turn to core ETFs for long-term holdings, where value matters most.
BlackRock is re-pricing US iShares Core ETFs to set a new market convention for all long-term investors and to lead this fast-growing segment of the ETF market.
“A new era is dawning for advisors and long-term investors of all kinds. To meet this historic shift, we aim to set a new market convention for core investing and long-term investors,” says Mark Wiedman, global head of iShares. “We brought ETFs and active management together in 2009. In 2012, we launched the iShares Core to serve long-term investors looking for great value at the centre of their portfolios. Since then, individual and institutional investors have adopted iShares Core ETFs faster than we imagined. We expect this trend only to quicken.”
“The iShares Core already offers investors and advisors the tax efficiency, liquidity and quality they need at the foundation of their portfolios. Now they can have the same quality at an even greater value,” says Martin Small, US head of iShares.
“We want iShares Core ETFs to be the market convention for all kinds of ETF users – home office models, digital advice platforms, asset managers and other institutions, financial advisors, and self-directed investors. We also see the Core as central to deepening our relationships with these clients. When our clients choose the iShares Core for the heart of their portfolios, they open conversations with us about other iShares and BlackRock funds.”
“This is another critical milestone to help advisers as they prepare for the major shift the DoL fiduciary rule requires – providing investors with quality index exposures at great value in the centre of their portfolios,” says Salim Ramji, head of BlackRock's US wealth advisory business. “These enhancements to the iShares Core are the latest innovation by BlackRock to help advisers build better portfolios for investors. Together with Aladdin Risk for Wealth, our risk management and portfolio construction platform, FutureAdvisor, a leader in B2B digital wealth management and our iRetire tools, we are committed to being a trusted partner to wealth advisers as they transition to fiduciary practices. We also expect that deepening our wealth advisory partnerships will only increase demand for iShares ETFs and BlackRock active investments."
BlackRock manages USD1.3 trillion globally in AUM across its iShares product line, including nearly USD1 trillion in precision exposures and financial instruments.