Among the changes to BlackRock's (NYSE:BLK) iShares Core product suite is the cutting of expense ratios: ITOT down four basis points to 0.03%, IUSG down two basis points to 0.07%, IUSV down two basis points to 0.07%, IEMG down two basis points to 0.16%, IEUR down two basis points to 0.12%, IPAC down two basis points to 0.12%, IUSB down three basis points to 0.12%.
In addition to the now bare-boned fee for the iShares Core S&P Total U.S. Stock Market ETF (NYSEARCA:ITOT), the fund will begin tracking the S&P Total Market Index, effective Dec. 18. This will broaden its exposure with more than 2K additional small-cap and micro-cap stocks.
Added to the core series is the iShares Core International Aggregate Bond ETF (NYSEARCA:IAGG).
Russell Investments is planning its annual index realignment today, affecting more than $5T in assets. Credit Suisse estimates $42B will trade as a result of the adjustment, resulting in one of the biggest trading days of the year in terms of dollar volume.
Asset managers and investors will have to realign their portfolios to match up with the new shifts in indices such as the Russell 2000 and the Russell 3000.
Due to the expected surge in volume, exchanges are now busy preparing for possible technical issues occurring over the course of the day.
Yesterday, the London Stock Exchange said it will acquire Frank Russell for $2.7B.
London Stock Exchange (LDNXF) has announced that it is buying the asset-management and stock index unit Frank Russell for $2.7B. A large chunk of the funding for the acquisition will be based off a $1.6B rights issue to be issued in September.
The stock-index operations of Frank Russell include the Russell 2000 barometer of small-cap stocks, while the investment business has $256B in assets under management.
Introduced in October 2012, the iShares core lineup will double in size on June 12th with the addition of 10 new and existing iShares funds.
Four new ETFs will roll out on Thursday to join the core lineup: iShares Core Dividend Growth ETF (DGRO), iShares Core MSCI Europe ETF (IEUR), iShares Core MSCI Pacific ETF (IPAC) and iShares Core GNMA Bond ETF (IUSB).
Six of the funds are existing and will undergo name and some will also see ticker changes: iShares Russell 3000 Growth ETF (IWZ) will become iShares Core U.S. Growth ETF under the ticker IUSG; iShares Russell 3000 Value ETF (IWW) will become iShares Core U.S. Value ETF under the ticker IUSV; iShares High Dividend ETF (HDV) will become iShares Core High Dividend ETF and continue to trade under HDV; iShares Credit Bond ETF (CFT) will become iShares Core U.S. Credit Bond ETF under the ticker CRED; iShares U.S. Treasury Bond ETF (GOVT) will become iShares Core U.S. Treasury Bond ETF and continue to trade under GOVT; iShares Barclays GNMA Bond ETF (GNMA) will become iShares Core GNMA Bond ETF and continue to trade under GNMA.
London Stock Exchange (LDNXF) is in exclusive negotiations with Northwestern Mutual Life Insurance to buy the latter's asset-management and stock index unit, Frank Russell, which the WSJ reports could be worth $3B.
The stock-index operations include the Russell 2000 barometer of small companies, while the investment business has $260B of assets under management. (PR)