BlackRock Broadens Its iShares Core Lineup
Low-cost lineup adds U.S. growth, dividend, and value ETFs and more foreign and bond ETFs.
On June 10, BlackRock announced the doubling in size of its "iShares Core" lineup of building-block exchange-traded funds, which are aimed at offering investors broad, low-cost exposure to certain asset classes.
Around June 12, iShares is set to roll out four new ETFs and rebrand six others, all of which will receive new names and most of which will pick up new ticker symbols and price tags. Although these new funds will be part of iShares' Core suite, the expanded set of 10 ETFs will be known as "iShares Core Select" ETFs.
The move clearly demonstrates iShares' commitment to its suite of "Core" funds, which launched in October 2012. On the equity side, the Core suite now will branch into several targeted geographic regions, including Europe and Asia, with new low-cost offerings that can act as substitutes for existing, higher-priced iShares offerings, such as iShares Europe (IEV) (0.60%) and iShares MSCI Pacific ex-Japan (EPP) (0.50%). It's worth noting that the new Europe and Asia ETFs will track all-cap MSCI benchmarks.
Also, the suite has added several strategic beta ETFs (per Morningstar's definition), which are devoted to dividends and growth and value factors. Three strategic beta funds will join the suite with significantly lower prices than before. For example, iShares High Dividend (HDV), which will take on the new name iShares Core High Dividend, will see its expense ratio drop to 0.12% from 0.40%. (Its index and ticker symbol will not change.) Similarly, the price tags for iShares Russell 3000 Growth (IWZ) and iShares Russell 3000 Value (IWW) will fall to 0.09% from 0.25% and 0.26%, respectively. (The funds' names will change and their tickers have already changed, but their indexes will not.) A fourth strategic beta fund will be iShares Core Dividend Growth (DGRO). DGRO and HDV both track Morningstar indexes (Morningstar licenses the index and collects asset-based fees.)
Interestingly, some other iShares strategic beta funds remain outside the "Core" lineup, such as iShares Russell 1000 Growth (IWF) and iShares Russell 1000 Value (IWD), both of which continue to charge 0.20%.
New Funds, With Their Expense Ratios and Indexes
Changes to Existing Funds That Will Join the Suite
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Robert Goldsborough does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.