BlackRock is adding two new iShares ETFs to the iShares Core line-up.
iShares Core U.S. REIT ETF (USRT) and iShares Core 5-10 Year USD Bond ETF (IMTB) are expected to begin trading on 3 November.
BlackRock has attracted $4.9bn into its U.S. iShares Core ETFs since lowering the expense ratios of 15 iShares Core funds on October 5th as investors are increasingly putting low-cost ETFs at the center of their long-term investments.
“We re-priced our U.S. iShares Core ETFs to set a new market standard for all long-term investors and to lead this growing segment of the ETF market. Over the past month, individual and institutional investors have adopted iShares Core ETFs faster than we expected, adding $4.9bn in net inflows,” said Martin Small, U.S. Head of iShares.
“iShares Core ETFs offer investors and advisors the tax efficiency, liquidity and quality they need. As advisors prepare for the major shift the Department of Labor (DoL) fiduciary rule requires – providing investors with quality products at great value in the center of their portfolios – we expect adoption of iShares Core ETFs to continue.”
iShares Real Estate 50 ETF (FTY) will become iShares Core U.S. REIT ETF (USRT). The new index for USRT is the FTSE NAREIT Equity REITs Index, a market cap-weighted index designed to measure performance of U.S. listed equity REITs, excluding timber, infrastructure and mortgage REITs. USRT’s expense ratio will be 0.08%.
iShares Core 5-10 Year USD Bond ETF (IMTB) provides investors with a low-cost intermediate bond fund alongside iShares’ low-cost short- and long-term bond offerings, ISTB and ILTB. IMTB’s net expense ratio will be 0.08%.2
“REIT stocks are underused sources of diversification and income. USRT simplifies access to an important portfolio building block with the potential for bond-like yields and stock-like appreciation. Similarly, investors can now take even more control of blending safety, diversification and income objectives with IMTB filling in the intermediate range of bond ETF maturities in the iShares Core line-up,” Small said.
Since launch, buy-and-hold investors ranging from global institutions to U.S. retail advisors have embraced iShares Core and its value proposition, bringing the overall AUM for U.S. iShares Core ETFs to $220bn.3 iShares has attracted $100.8bn globally in net new assets and has $1.2tn of AUM as of October 28, 2016.