BlackRock’s exchange-traded fund arm re-packaged 14 listed tracker funds for its European client base as its Core Series which covers the main bond and equity indices. The series comprises nine equity ETFs, including the newly launched Core MSCI Emerging Markets IMI UCITS ETF, and five fixed income ETFs.
The launch is an extension of a similar range launch in the US in 2012 and in Canada in March earlier this year.
“The launch comes on the back of the evolution we see happening in the European market, where there is more demand from customers,” an iShares spokesperson said.
The cheapest product available in the Core Series is the iShares Core S&P 500 UCITS ETF which costs seven basis points, slashed from 15bp in April. Interestingly, the same product in the US costs the same, indicating that the European market is catching up with the cheaper products that have dominated in the US market.
Rachel Lord, head of iShares for EMEA, noted this development:
“ETFs are coming of age in Europe. The industry is at a tipping point for mass market usage. What started as a tool for institutions has now been adopted by a broad spectrum of investors. We are seeing a shift in usage as passive investments increasingly move to the core of client portfolios and investors use them to build low cost and diversified solutions for the long term.”
All other product will see the fee reduction effective as of 2 June.
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