Lower Prices for 15 U.S. iShares Core
ETFs
A New Market Convention for Long-Term
Investors
Move to Help Advisors Transition to DoL
Fiduciary Rule
Strategic Investment to Drive Higher Organic
Asset and Revenue Growth
BlackRock, Inc. (NYSE:BLK) today set a new market standard for
long-term investors by reducing prices across its growing U.S.
iShares Core ETFs.
Institutions, individuals, and financial advisors are
increasingly putting low-cost ETFs at the center of their long-term
investments. Now, with the Department of Labor (DoL) fiduciary rule
coming into force, financial advisors are sharpening their focus on
the quality and cost-efficiency of funds. BlackRock expects these
advisors will use ETFs more and more as active tools and alongside
high-conviction active funds to build better portfolios for
clients. We also expect financial advisors will increasingly turn
to core ETFs for long-term holdings, where value matters most.
A New Convention for Core
Investing
BlackRock is re-pricing U.S. 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,” said 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 center
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.”
Quality Funds at a Great
Value
“The iShares Core already offers investors and advisors the tax
efficiency1, liquidity and quality they need at the foundation of
their portfolios2. Now they can have the same quality at an even
greater value,” said Martin Small, U.S. 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.”
Helping Advisors Transition to DoL
Fiduciary Rule
“This is another critical milestone to help advisors as they
prepare for the major shift the DoL fiduciary rule requires –
providing investors with quality index exposures at great value in
the center of their portfolios,” said Salim Ramji, Head of
BlackRock's U.S. Wealth Advisory business. “These enhancements to
the iShares Core are the latest innovation by BlackRock to help
advisors 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 advisors 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."
Enhancing Scale and Investing for
Future Growth
BlackRock manages $1.3 trillion globally in AUM across its
comprehensive iShares product line, including nearly $1 trillion in
precision exposures and financial instruments favored by clients
for their deep liquidity and global breadth.3 With more than $90
billion in net new assets raised this year, iShares is the U.S. and
global leader in both flows and assets under management.4
"As we communicated at our Investor Day in June, our firm’s
history is one of taking action to evolve our business ahead of
changes in the investment ecosystem to drive value for clients and
shareholders,” said Gary Shedlin, BlackRock’s Chief Financial
Officer. “We brought together active and passive on one platform in
2009, launched the iShares Core in 2012 and, as evidenced by the
acquisition of FutureAdvisor, are continuously finding new ways to
use technology to better serve our clients. Today's re-pricing of
iShares Core ETFs is another example of our commitment to maximize
the benefits of scale as a means to efficiently invest in our
business and drive higher organic growth over time.”
U.S. iShares Core – Pricing Updates effective October 5,
2016
Category Fund
Ticker
Previous
NetExpenseRatio
(BPS)
New
NetExpenseRatio (BPS)
U.S. Equity iShares Core S&P 500 ETF IVV
7 4 iShares Core S&P Mid-Cap ETF
IJH 12 7 iShares Core
S&P Small-Cap ETF IJR 12
7 iShares Core High Dividend ETF HDV
12 8 iShares Core Dividend
Growth ETF DGRO 12 8
International Equity iShares Core MSCI Total International
Stock ETF IXUS 14 11
iShares Core MSCI EAFE ETF IEFA 12
8 iShares Core MSCI Europe ETF IEUR
12 10 iShares Core MSCI Pacific ETF
IPAC 12 10
iShares Core MSCI Emerging Markets ETF IEMG
16 14
Fixed Income iShares Core Total
USD Bond Market ETF IUSB 12
8* iShares Core U.S. Aggregate Bond ETF AGG
8 5* iShares Core 1-5 Year USD Bond ETF
ISTB 12 8 iShares Core
10+ Year USD Bond ETF ILTB 12
8 iShares Core International Aggregate Bond
ETF IAGG 15 11
BlackRock Enhances Index Mutual Funds
Range
In addition to iShares Core ETFs, BlackRock manages core
building block exposures in index mutual fund vehicles. To seek to
give investors the broadest array of indexed investment choices for
broad market exposures, BlackRock also reduced expenses on five
index mutual funds across Class K, Institutional, and Investor A
share classes. The BlackRock index mutual fund family includes 13
funds investing in US equity, fixed income, real estate, and
international index-based strategies. BlackRock has been managing
index investment strategies on behalf of clients for more than 40
years.
Fund
Class K ticker
GrossExpense Ratio
(BPS)1
Previous
Net ExpenseRatio
(BPS)2
New Net Expense Ratio
(BPS)3
BlackRock Midcap Index Fund BRMKX 10
84 74 BlackRock Small/Mid Cap Index
Fund BSMKX 18 84
74 BlackRock Small Cap Index Fund BDBKX
20 125 75 BlackRock Total
International ex U.S/ Index Fund BDOKX
46 125 115 BlackRock U.S. Total Bond
Index Fund WFBIX 9 65
55
About BlackRock
BlackRock is a global leader in investment management, risk
management and advisory services for institutional and retail
clients. At June 30, 2016, BlackRock’s AUM was $4.890 trillion.
BlackRock helps clients around the world meet their goals and
overcome challenges with a range of products that include separate
accounts, mutual funds, iShares® (exchange-traded funds), and other
pooled investment vehicles. BlackRock also offers risk management,
advisory and enterprise investment system services to a broad base
of institutional investors through BlackRock Solutions®. As of June
30, 2016, the firm had approximately 12,700 employees in more than
30 countries and a major presence in global markets, including
North and South America, Europe, Asia, Australia and the Middle
East and Africa. For additional information, please visit the
Company’s website at www.blackrock.com | Twitter: @blackrock_news |
Blog: www.blackrockblog.com | LinkedIn:
www.linkedin.com/company/blackrock
About iShares
iShares® is a global leader in exchange-traded funds (ETFs),
with more than a decade of expertise and commitment to individual
and institutional investors of all sizes. With over 700 funds
globally across multiple asset classes and strategies and more than
$1 trillion in assets under management as of June 30, 2016, iShares
helps clients around the world build the core of their portfolios,
meet specific investment goals and implement market views. iShares
funds are powered by the expert portfolio and risk management of
BlackRock, trusted to manage more money than any other investment
firm.5
* Net expense ratios are shown. BlackRock Fund Advisors ("BFA"),
the investment adviser to the Funds and an affiliate of BlackRock
Investments, LLC, has contractually agreed to waive a portion of
its management fees through 06/30/2021 for AGG and 02/28/2019 for
IUSB. Gross expenses for these funds are 0.06% and 0.10%
respectively.
Carefully consider the funds' investment objectives, risk
factors, and charges and expenses before investing. This and other
information can be found in the funds' prospectuses or, if
available, the summary prospectuses which may be obtained by
visiting www.iShares.com or
www.blackrock.com. Read the prospectus carefully before
investing.
Investing involves risk, including possible loss of
principal.
Transactions in shares of the iShares funds will result in
brokerage commissions and will generate tax consequences. iShares
funds are obliged to distribute portfolio gains to shareholders.
There can be no assurance that an active trading market for shares
of an ETF will develop or be maintained. Diversification and asset
allocation may not protect against market risk or loss of
principal.
The Funds are distributed by BlackRock Investments, LLC
(together with its affiliates, “BlackRock”).
The iShares Funds are not sponsored, endorsed, issued, sold or
promoted by MSCI Inc., Russell Investment Group or S&P Dow
Jones Indices LLC. None of these companies make any representation
regarding the advisability of investing in the Funds. BlackRock is
not affiliated with the companies listed above.
©2016 BlackRock. All rights reserved. iSHARES and
BLACKROCK are registered trademarks of BlackRock. All other
marks are the property of their respective owners.
iS-19344-1016
1 97% of iShares have not distributed a capital gain in the last
five years, as of 12/31/15.
2 Over a three year period, as of 12/31/2015, 64% of global
iShares Funds were within 25 bps and 82% were within 50 bps of
their benchmarks, based on the Net Asset Value of the Funds.
3 Source: BlackRock and Bloomberg as of 9/30/16
4 Source: BlackRock and Bloomberg as of 9/30/16
5 Based on $4.89T in AUM as of 6/30/16.
Forward-looking Statements.
This press release, and other statements that BlackRock may
make, may contain forward-looking statements within the meaning of
the Private Securities Litigation Reform Act, with respect to
BlackRock’s future financial or business performance, strategies or
expectations. Forward-looking statements are typically identified
by words or phrases such as “trend,” “potential,” “opportunity,”
“pipeline,” “believe,” “comfortable,” “expect,” “anticipate,”
“current,” “intention,” “estimate,” “position,” “assume,”
“outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,”
“achieve,” and similar expressions, or future or conditional verbs
such as “will,” “would,” “should,” “could,” “may” and similar
expressions. BlackRock cautions that forward-looking statements are
subject to numerous assumptions, risks and uncertainties, which
change over time. Forward-looking statements speak only as of the
date they are made, and BlackRock assumes no duty to and does not
undertake to update forward-looking statements. Actual results
could differ materially from those anticipated in forward-looking
statements and future results could differ materially from
historical performance.
Additional Index Mutual Funds
Footnotes
1 Gross expense ratio is based on the applicable fund’s
prospectus dated October 5, 2016.
2 Previous net expense ratio is based on the applicable fund’s
prospectus effective prior to October 5, 2016 and reflects net
expenses, excluding investment related expenses, which are
investment dividend expenses, interest expense, acquired fund fees
and expenses and certain other fund expenses.
3 New net expense ratio is based on the applicable fund’s
prospectus dated October 5, 2016, and reflects net expenses,
excluding investment related expenses, which are investment
dividend expenses, interest expense, acquired fund fees and
expenses and certain other fund expenses.
4 Previous net expense ratio for Class K shares of the fund had
contractual waivers with an end date of November 30, 2016. New net
expense ratios for Class K shares of the fund have contractual
waivers with an end date of November 30, 2017, terminable upon 90
days’ notice.
5 Previous net expense ratio for Class K shares of the fund had
contractual waivers with an end date of April 30, 2017. New net
expense ratios for Class K shares of the fund have contractual
waivers with an end date of April 30, 2018, terminable upon 90
days’ notice.
Class K Shares are available only to certain (i)
employer-sponsored retirement plans, (ii) collective trust funds,
investment companies and other pooled investment vehicles, (iii)
institutional investors and (iv) other investors who met the
eligibility criteria for BlackRock shares or Class K shares prior
to August 15, 2016 and have continually held Class K shares of the
fund in the same account since August 15, 2016. Class K Shares have
a $5 million initial minimum investment requirement, unless
purchased as part of a qualified plan.
The net expense ratios for Institutional and Investor A shares
will be higher than the net expense ratios for Class K shares set
forth above.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20161004006722/en/
BlackRock, Inc.Brian Beades,
212-810-5596Brian.Beades@blackrock.comorPeter McKillop,
212-810-3737Peter.McKillop@blackrock.comorMelissa Garville,
212-810-5528Melissa.Garville@blackrock.com
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