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iShares cuts expenses, creates new "core" funds

I'm just curious to hear what the advisors (and others, especially current iShare shareholders) have to say about the changes Blackrock has announced.

Summary:

MER cuts on six funds:

IVV drops from 0.09% to 0.07% IJH drops from 0.21% to 0.15% IJR drops from 0.22% to 0.16% AGG drops from 0.20% to 0.08% (!) ISI drops from 0.20% to 0.07% and is re-symboled to ITOT GLJ drops from 0.20% to 0.12% and is re-symboled to ILTB

Four new "core" funds are being launched:

IXUS at 0.16% (comparable fund is ACWX at 0.34%) IEMG at 0.18% (comparable fund is EEM at 0.67%) IEFA at 0.14% (comparable fund is EFA at 0.34%) ISTB at 0.12% (comparable fund is SHY at 0.15%)

Some coverage from IndexUniverse on this:

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Reply to
Rich Carreiro
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I'm concerned about a side effect of these lower expense or free of commission etfs... the strangulation and possible closeout of your legacy etfs which may force a huge taxable event.

Against my normal practice, I consolidated much of my core buy and hold indexed positions in a couple of etfs several years ago. I always like going for a twist on the conventional thing, and although these equal-weighted-index ones gave outperformance they never caught on and were sold to a new overseer. Now I look closely and find one quarter of them were closed by the new company, and some given new tickers. Mine carry large cap gains, and would destroy my tax planning if closed... esp near the end of the year.

I have had a mutual fund or two close on me, and now have to consider any of the older etfs which hasn't joined the low price bandwagon to be subject to shutdown. Maybe every december I should try to see if I can bleed them down in increments equal to early purchase chunks... and reinvest. Anyway I am doing more and more individual stock trading rather than funds nowdays.

Reply to
dumbstruck

etfs... the strangulation and possible closeout of your legacy etfs which may force a huge taxable event.

Yahoo article backs me up in showing a tidal wave of etf closures of even good funds

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Reply to
dumbstruck

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