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.
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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