The cost of investing in the distributing iShares FTSE 100 UCITS ETF has been lowered to seven basis points, effective 10 March, having previously been at 40 bps. The changes are in reaction to what BlackRock says is a UK-based investor preference towards income distributing over income accumulation.
Additionally, the price of the accumulating iShares FTSE 100 UCITS ETF is now seven bps, down from 10.
In further alterations to BlackRock’s ETF offering, the distributing FTSE 100 ETF has replaced its accumulating counterpart in the iShares Core series in order to broaden the range’s appeal to long-term investors.
Fergus Slinger, iShares’ head of UK sales, highlighted investor desire to hold distributing UK equity ETFs at the centre of their portfolios as a key driver of the decision to alter the series.
“As the FTSE 100 hits record highs, the price of investing in it is falling,” he said. “The ETF market throughout Europe is growing hugely, and today’s changes are about ensuring the demand UK investors have for ETFs is met with the right products at the right price.
“We believe ETFs have an important role to play post the Retail Distribution Review and want to confirm our commitment to our clients in this market. We have responded to their needs by adjusting the range and lowering prices.
“ETFs are coming of age in Europe. The European ETF market is expanding and evolving and as a result there is a new group of investors turning to ETFs as a means of holding key, or core, exposures over the longer term. These investors particularly seek cost-efficiency for widely used and widely available core exposures.”
