BlackRock's exchange-traded fund (ETF) business, iShares, is to close 15 equity and commodity ETFs, citing low investor demand.
The funds to be closed are a mix of its own ETFs and some bought from the deal earlier this year when BlackRock bought Credit Suisse’s ETF business.
Low investor demand for the funds is the principal cause of the closures, says iShares. The closures, effective from October 24, hit eight iShares funds and seven legacy funds from Credit Suisse.
The closures follow a strategic review of business that will also result in lower costs for many investors.
Two other measures following the strategic review are: harmonised pricing between funds with identical exposures; and repositioning the accumulating versions of three ETFs – including the iShares FTSE 100 Ucits ETF – at a total expense ratio (TER) of 15 basis points.
Joe Linhares, head of iShares in Europe, the Middle East and Africa, says: “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.”
The funds that are closing include: iShares MSCI Russia Capped Swap; iShares MSCI Europe ex-EMU Ucits ETF; and iShares FED Funds Effective Rate Ucits ETF (Swap).
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