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iShares to Make Significant Additions to Core Lineup


BlackRock’s (BLK) iShares, the world’s largest issuer of exchange traded funds, will look to capitalize on the success of its low-cost core suite of ETFs with the addition of 10 funds to that group.

The new additions to the iShares core lineup include four new funds and six existing ETFs. iShares rolled out its initial batch of core ETFs in October 2012. The concept has proven successful with the iShares Core MSCI Emerging Markets ETF (IEMG) growing to $4.6 billion in assets under management. While the iShares Core MSCI EAFE ETF (IEFA) has pulled in $$2.3 billion.

Initially seen as an effort to woo cost-conscious retail investors, the iShares core ETFs have also been popular with institutional investors. [Core ETFs a Hit With Institutional Investors]

New pricing and new names for the six existing iShares ETFs that will become core funds will go into effect on June 12 th , according to a statement from BlackRock. That is the same day the four new core products are expected to debut.

The $3.8 billion iShares High Dividend ETF (HDV) , which hit an all-time high today, is one of the existing iShares ETFs that will become a core product. [Dividend ETFs for Diversity]

HDV’s annual fee will be reduced to 0.12% from 0.4% and the fund is now known as the iShares Core High Dividend ETF.

Others include the iShares Credit Bond ETF (NYSEArca:CRED) , the iShares Russell 3000 Growth ETF (NYSEArca:IUSG) and the iShares Russell 3000 Value ETF (NYSEArca:IUSV) . The iShares Russell 3000 Value ETF is changing its ticker from IWW while the iShares Credit Bond ETF is changing its ticker from CFT. The former ticker for the iShares Russell 3000 Value ETF is IWW.

New additions to the iShares core suite include the iShares Core Dividend Growth ETF (DGRO) , iShares Core MSCI Europe ETF (IEUR) , the iShares Core MSCI Pacific ETF (IPAC), iShares Core Total USD Bond Market ETF (IUSB) and the iShares Core U.S. Treasury Bond ETF (GOVT) .

““Investors seek value for money in long-term investments especially in core broad market exposures. That’s where we are aiming to accelerate iShares growth by expanding the iShares Core,” said Patrick Dunne, head of global markets and investments for iShares, said in the statement. “As this market continues to grow, investors are seeking straightforward, easy-to-understand content and resources.”

iShares Core High Dividend ETF



The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.