Maybe BlackRock is too greedy sometimes. For example, back in 2012 BlackRock introduced its first 10 "Core" branded iShares ETFs. Six of them were existing iShares with new names and reduced expense ratios, which was good. But the other four were newly created ETFs in addition to existing very similar ETFs, which was bad.
According to this old M* article, The iShares Empire Strikes Back ... With Low Fee Funds:
According to this old M* article, The iShares Empire Strikes Back ... With Low Fee Funds:
Many iShares investors holding those last four ETFs in taxable accounts were extremely annoyed that BlackRock hadn't converted them to Core ETFs with lower fees. They felt the only reasonable explanation was simple greed. It left a bad taste, which many still remember....
We also kind of like the four new ETFs. They are all among the lowest-cost options available to investors in their respective categories. They are also extremely well diversified representations of market segments most investors would want to include in their portfolios.
iShares Core MSCI Total International Stock ETF (IXUS) (0.16%)
iShares Core MSCI Emerging Markets ETF (IEMG) (0.18%)
iShares Core MSCI EAFE ETF (IEFA) (0.14%)
iShares Core Short-Term U.S. Bond ETF (ISTB) (0.12%)
The Wrinkle
Again, it’s difficult for anyone to criticize iShares for launching low-cost and well-constructed funds. We’d love every provider to do the same. We also think these four new funds are properly identified as potential core holdings, when used in the proper proportions, for the vast majority of investors.
The curious part is that these four funds are extremely similar to several existing ETFs on the market, most notably to four that iShares already issues. By looking at the names, most investors would have difficulty distinguishing these new offerings from the other funds, save the “Core” identifier in the new funds. Here are the existing funds:
iShares MSCI ACWI ex US Index (ACWX) (0.34%)
iShares MSCI Emerging Markets Index (EEM) (0.67%)
iShares MSCI EAFE Index (EFA) (0.34%)
iShares Barclays 1-3 Year Treasury Bond (SHY) (0.15%)
...
Statistics: Posted by Cocoa Beach Bum — Sat Feb 10, 2024 12:06 pm — Replies 27 — Views 2467









