BlackRock’s exchange-traded fund platform iShares is to close 15 equity and commodity ETFs by 24 October due to low investor demand.
This includes eight iShares ETFs and seven legacy Credit Suisse ETFs.
In July, BlackRock completed its acquisition of Credit Suisse’s ETF business, combining it with iShares.
iShares will also be reducing the price on the iShares FTSE 100 Ucits ETF, iShares S&P 500 Ucits ETF and the iShares S&P 500 – B Ucits ETF to a total expense ratio of 15 basis points.
Following the Credit Suisse acquisition, iShares has chosen to make the pricing the same on 10 identical exposures to “ensure holders in each range are treated equally.”
iShares EMEA head Joe Linhares says: “These changes mean where there has been overlap between funds, our investors will benefit from consistent, and in many cases lower, total expense ratios as a result of the acquisition. Traditional buy-and-hold investors tell us they want access to the broadest market exposure in a way that enables them to keep more of what they earn over long holding periods.”
Tower Hill Associates director John Lang says: “Compared to some other providers, iShares is not the cheapest in town but it is a market leaders.
“It is good to see iShares reducing prices and reacting to market demand. There is no point in running duplicate mandates.”