BlackRock joins stealth war over junk-debt ETF fees

|About: BlackRock, Inc. (BLK)|By:, SA News Editor

A number of money managers are cutting fees to attract junk bond investors, but they're doing it quietly, Bloomberg reports.

The largest issuer of exchange-traded funds, BlackRock (NYSE:BLK), disclosed in a footnote of a filing last month that it cut the cost of its iShares Broad USD High Yield Corporate Bond ETF (NYSE:USHY) by waiving part of the management fee.

The cut results in a charge of $1.50 per $1,000 invested in the fund, according to the filing.

Meanwhile, State Street's (NYSE:STT) SPDR ICE BofAML Broad HIgh Yield Bond ETF (NYSEARCA:CJNK) will charge $1.50/$1,000 from April 1.

Deutsche Bank's (NYSE:DB) DWS GRoup recently cut its Xtrackers USD High Yield Corporate Bond ETF (NYSEARCA:HYLB) to $1.50 after a fee waiver, which was also buried in a regulatory filing.

BlackRock's iShares iBoxx High Yield Corporate Bond ETF (NYSEARCA:HYG), the largest high-yield ETF, still charges $4.90/$1,000 invested, according to Bloomberg data.

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