iShares To Shut 15 ETFs, Keep Fees Under Downward Pressure

Tom Burroughes

24 September 2013

, the exchange traded funds brand of BlackRock, the US asset management giant, is shutting down 15 equity and commodity ETFs as at 24 October this year for reasons including low client demand, it said today.

The changes are taking place in the wake of iShares’ purchase of the Credit Suisse ETF business, that was completed in July this year. The funds to be shut include eight iShares funds and seven legacy Credit Suisse ETFs.

“The combination of the two fund lines has resulted in 10 identical exposures. iShares has harmonised the pricing for these to ensure holders in each range are treated equally,” iShares said in a statement.

The firm is also repositioning the accumulating versions of the iShares FTSE 100 UCITS ETF, iShares S&P 500 UCITS ETF and the iShares S&P 500 – B UCITS ETF at a total expense ratio of 15 basis points.

“Today’s changes mean that where there has been overlap between funds, our investors will benefit from consistent, and in many cases lower TERs as a result of the acquisition,” Joe Linhares, head of iShares for EMEA, said.

“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. They deserve low-cost funds that provide deep access to markets,” he said.

The funds to be closed:

-- iShares MSCI Russia Capped Swap;

-- iShares S&P CNX Nifty India Swap;

-- iShares S&P GSCI Dynamic Roll Commodity Swap;

-- iShares S&P GSCI Dynamic Roll Agriculture Swap;

-- iShares S&P GSCI Dynamic Roll Energy Swap;

-- iShares S&P GSCI Dynamic Roll Industrial Metals Swap;

-- iShares Developed World ex-UK UCITS ETF;

-- iShares MSCI Europe ex-EMU UCITS ETF;

-- iShares CSI 300 UCITS ETF (Swap);

-- iShares MSCI India UCITS ETF (Swap);

-- iShares EONIA UCITS ETF (Swap);

-- iShares MSCI Taiwan UCITS ETF (Swap);

-- iShares MSCI EM EMEA UCITS ETF (Swap);

-- iShares FED Funds Effective Rate UCITS ETF (Swap);

-- iShares Global Alternative Energy UCITS ETF.