Responds to the European ETF market “coming of age”. Range includes high quality, low cost equity and fixed income funds for long term investors.…
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BlackRock launches the iShares Core Series for European investors. The suite consists of 14 ETFs designed to provide access to some of the most popular exposures used by investors today, at some of the lowest prices in Europe.
The launch follows the impressive growth and evolution in the European ETF market. The industry has grown 23% annually over the last five years which has led to new uses and demand for ETFs, from a wide variety of investors across institutional and retail, and the iShares Core Series responds to this.
The iShares Core Series comprises nine equity ETFs, including the newly launched iShares Core MSCI Emerging Markets IMI UCITS ETF, and five fixed income ETFs. Some of the funds have had their headline prices reduced and
all are physically replicating, purchasing and holding the underlying securities.
The iShares Core Series is designed as a range of building blocks for longer-term positions at the core of investors’ portfolios. It is particularly suited to the needs of UK and European financial intermediaries and their clients. The range can be complemented with iShares ETFs that address investors’ more specific investment objectives – from earning income in retirement to capitalising on market opportunities in the shorter-term.
The European iShares Core Series follows the launch of a similar Core series in the U.S. in 2012 and the Canadian series launched in March 2014.
Rachel Lord, Head of iShares for EMEA said: “ETFs are coming of age in Europe. The industry is at a tipping point for mass market usage. What started as a tool for institutions has now been adopted by a broad spectrum of investors. We are seeing a shift in usage as passive investments increasingly move to the core of client portfolios and investors use them to build low cost and diversified solutions for the long term.”
“For the iShares Core Series we’ve taken the most popular markets investors want exposure to and ensured our ETFs are attractively priced without compromising on quality. As the ETF market evolves, our clients’ needs change and we respond; the iShares Core Series is testament to this.”
Mark Johnson, Head of UK Sales, iShares said: “Retail investors, and the intermediaries and platforms they invest through, will be a key driver of ETF industry growth. Passive funds are becoming a key starting point for many discussions on portfolio design and the iShares Core series gives advisers the building blocks they need to create cost effective solutions for their clients.”
The European iShares Core Series:
Fund name New (Previous) Total Expense Ratio (basis points)1
iShares Core FTSE 100 UCITS ETF2 10 (15)
iShares Core EURO STOXX 50 UCITS ETF2 10 (20)
iShares Core S&P 500 UCITS ETF2 7 (15)
iShares Core MSCI Japan IMI UCITS ETF2 20 (48)
iShares Core MSCI Pacific ex Japan UCITS ETF2 20 (48)
iShares Core MSCI World UCITS ETF2 20 (40)
iShares Core MSCI Emerging Markets IMI UCITS ETF2 25
Country specific offering in the UK
iShares Core UK Gilts UCITS ETF2 20
iShares Core £ Corporate Bond UCITS ETF2 20
Country specific offering in Germany, the Netherlands and the Nordics
iShares Core Euro Government Bond UCITS ETF2 20
iShares Core Euro Corporate Bond UCITS ETF2 20
Country specific offering in Germany
iShares Core DAX® UCITS ETF (DE) 2 16
Country specific offering in Switzerland
iShares Core SPI ® (CH) 3 10 (AMC)
iShares Core CHF Corporate Bond (CH) 3 15 (AMC)
AMC = Annual Management Charge. iShares Swiss domiciled funds have a variable TER which includes AMC plus variable charges on an annual basis.
All of the iShares Core equity funds are accumulating funds, except for iShares Core SPI® (CH), meaning that income from holdings is automatically re-invested to make managing portfolios easier.