Tags: BlackRock | Lower | Fees | ETFS

BlackRock to Lower Fees on Certain ETFs

Monday, 10 Sep 2012 09:57 AM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
BlackRock Inc. is planning to announce lower fees on some of its core iShares exchange-traded funds in the fourth quarter, Chief Executive Officer Laurence Fink said on Monday.

The changes will only apply to some ETFs with lower-fee competition and will not be a "wholesale fee change on everything," Fink told attendees of the Barclays' Global Financial Services Conference in New York.

Exchange-traded funds are baskets of securities, like mutual funds, but they trade on exchanges, like individual securities. They are cheaper than mutual funds and allow investors to trade throughout the day, with simultaneous pricing, unlike mutual funds, which price at the end of the day.

Over the past few years, BlackRock's iShares ETFs have been losing U.S. retail market share as Vanguard Group has been aggressively rolling out cheaper ETFs.

Despite its plans to reduce its fees on some ETFs, BlackRock still anticipates its margins to grow to more than 40 percent in the near future, Fink said.

"Those products are going to have reduced fees and reduced margins ... but we still have increasing margins in some of our other ETF products," he said. "The key is about building out more innovative products."

Shares of BlackRock were down 0.2 percent at $181.68 in early trading.

© 2014 Thomson/Reuters. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
You May Also Like
Around the Web
Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved