BlackRock has announced the selection of the iShares Core Dividend ETF (Cboe: DIVB) to its roster of iShares Core ETFs, writing that it enters the franchise as the lowest-cost dividend ETF trading in the US at 5bps, or 50 cents for every USD1,000 invested.
The firm writes that DIVB enters the iShares Core ETF line-up to increase the options of low-cost, diversified income-seeking investment strategies for clients, as these types of exposures have the potential to outperform during periods of inflation and rising interest rates.
“Since the launch of iShares Core ETFs in 2012, clients have entrusted nearly USD800 billion in assets as they’ve identified iShares Core ETFs as an efficient way to build a diversified long-term investment portfolio,” says Armando Senra, Head of iShares Americas at BlackRock. “The line-up has nearly tripled over the decade, part of BlackRock’s commitment to help people achieve financial goals like retirement no matter the market climate.”
iShares Core Equity ETFs have not made a capital gain distribution since BlackRock introduced the iShares Core ETF franchise, which BlackRock writes means that it is helping people ‘minimise taxes and keep more of what they earn’.
The firm writes that across 400 listed ETFs, US iShares investors have saved USD338 million in fee reductions since 2015, keeping more of what people earned within their portfolios. As the world’s largest ETF issuer by AUM, iShares has consistently demonstrated a commitment to pass the benefits of scale on to its clients, the firm says.
“With current market conditions our clients are revisiting their investments, looking to build resilience while searching for income,” says Senra. “We believe iShares ETFs have a place in most Americans’ portfolios because they offer diversification, value and efficiency which are key ingredients in building wealth over time.”