iShares fee cuts

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stlutz
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iShares fee cuts

Post by stlutz » Sun Jun 03, 2018 8:49 pm

Didn't see an article or a press release anywhere, but it looks like iShares has cut fees on a fair number of funds as of Friday. Ones I've noticed in particular:

IXUS (Total International): 11 -> 10 bps
MUB & SUB (Muni Bonds): 25 -> 7 bps
CSJ/CIU/CRED/CLY (various credit bonds) 15 or 20 bps -> 6 bps

Now if they could just get Treasury and Smallcap value funds that are competitive. :moneybag

MikeMak27
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Re: iShares fee cuts

Post by MikeMak27 » Sun Jun 03, 2018 8:59 pm

It appears SCZ (small cap developed international) went from 0.40% to 0.39% as of March 31st, 2018.
Mac 4 fund portfolio: 45% US small cap value (IJS, VBR), 40% Emerging Markets (IEMG, VWO, FPMAX), 10% long term US treasuries (TLT), 5% US REITS (VNQ)

MikeMak27
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Re: iShares fee cuts

Post by MikeMak27 » Sun Jun 03, 2018 9:19 pm

EZU, Ishares MSCI Eurozone Etf expense ratio cut from 0.49% to 0.47% as of March 31st, 2018
Mac 4 fund portfolio: 45% US small cap value (IJS, VBR), 40% Emerging Markets (IEMG, VWO, FPMAX), 10% long term US treasuries (TLT), 5% US REITS (VNQ)

MikeMak27
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Re: iShares fee cuts

Post by MikeMak27 » Sun Jun 03, 2018 9:49 pm

After clicking on a number of Ishares etf’s, it appears most if not all individual developed country etfs (EIRL Ireland, EWQ France), expense ratios have been cut from 0.49% to 0.47% and emerging market individual country etfs (Mexico EWW, Chile ECH) have been cut from 0.62% to 0.58%.

Good little BlackRock! Good Larry Fink!
Mac 4 fund portfolio: 45% US small cap value (IJS, VBR), 40% Emerging Markets (IEMG, VWO, FPMAX), 10% long term US treasuries (TLT), 5% US REITS (VNQ)

lack_ey
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Re: iShares fee cuts

Post by lack_ey » Sun Jun 03, 2018 10:46 pm

Hm, notably not LQD (3+ yr corporate bonds) or HYG (junk bonds).

MUB (municipal bonds) is now competitive with Vanguard's VTEB following the same index, or actually better now. It's always had more AUM than Vanguard, which started much later, so now there's no tradeoff between ER and trading volume/secondary liquidity. That said, VTEB has grown and already trades tens of millions of $ a day.

SUB (short-term muni) is now the go-to ETF in that space. At 7 bps it undercuts SHM's 20 considerably. That said, asset coverage is a little bit different—SUB is shorter term and includes 15% A and BBB rating, whereas SHM only has AA- and above.


...in other news, apparently the credit bond ETFs are changing indexes later this year to focus on corporate bonds, and they're also changing maturity ranges. CSJ is 1-3 yr but is moving to 1-5. CIU is 1-10 now and is moving to 5-10. The 1-5 and 5-10 match Vanguard's funds. The SPDR ETFs have the 1-3 and 1-10 ranges (SPSB and SPIB). The credit bond ETFs now include some supranational and local authority issuers such as the IRBD (International Bank for Reconstruction and Development) and Asian Development Bank and other stuff issued in USD, and will become a little less diversified and a little lower quality.

I wonder if they think there's some kind of messaging issue with calling them credit bonds. I think fewer people know what that means and are clear on that compared to what corporate bonds are.

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whodidntante
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Re: iShares fee cuts

Post by whodidntante » Sun Jun 03, 2018 10:51 pm

MikeMak27 wrote:
Sun Jun 03, 2018 9:19 pm
EZU, Ishares MSCI Eurozone Etf expense ratio cut from 0.49% to 0.47% as of March 31st, 2018
At that price, I would buy two shares instead of one! :happy

jbranx
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Re: iShares fee cuts

Post by jbranx » Sun Jun 03, 2018 11:49 pm

That's great news; VG is having an impact with VTEB. However, I clicked on the footnote on the Ishares MUB fact sheet and it says it's a fee waiver until 2023.

lack_ey
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Re: iShares fee cuts

Post by lack_ey » Mon Jun 04, 2018 3:49 pm

Here's an article from today:
http://www.etf.com/sections/features-an ... d-etf-fees

Apparently we missed some, including
iShares J.P. Morgan EM Local Currency Bond ETF (LEMB), from 0.50% to 0.30%
iShares Core MSCI International Developed Markets ETF (IDEV), from 0.07% to 0.05%

Not bad, this price war thing.

cocoon
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Re: iShares fee cuts

Post by cocoon » Wed Jun 06, 2018 3:02 am

Great news! Thanks for providing an article! :happy

retiringwhen
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Location: New Jersey, USA

Re: iShares fee cuts

Post by retiringwhen » Wed Jun 06, 2018 6:15 am

jbranx wrote:
Sun Jun 03, 2018 11:49 pm
That's great news; VG is having an impact with VTEB. However, I clicked on the footnote on the Ishares MUB fact sheet and it says it's a fee waiver until 2023.
The age old trick of temporary fee waivers.... I remember T. Row Price doing that back in the 90s to encourage more inflows. They quietly raised them 2 years later. Caught me with a MM back then.

lack_ey
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Re: iShares fee cuts

Post by lack_ey » Wed Jun 06, 2018 10:01 am

retiringwhen wrote:
Wed Jun 06, 2018 6:15 am
jbranx wrote:
Sun Jun 03, 2018 11:49 pm
That's great news; VG is having an impact with VTEB. However, I clicked on the footnote on the Ishares MUB fact sheet and it says it's a fee waiver until 2023.
The age old trick of temporary fee waivers.... I remember T. Row Price doing that back in the 90s to encourage more inflows. They quietly raised them 2 years later. Caught me with a MM back then.
Fee waivers are always temporary in the sense of having an expiration date, even if the actual plan is to keep effectively renewing them. Five years is longer than it usually is, though.

Whether they remove a fee waiver or just increase the expense ratio later, the effect is the same for investors. Either could happen; best keep an eye every once in a while on fees. For fixed income you can readily switch out later with little tax impact.

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mrspock
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Re: iShares fee cuts

Post by mrspock » Thu Nov 08, 2018 12:09 pm

stlutz wrote:
Sun Jun 03, 2018 8:49 pm
Didn't see an article or a press release anywhere, but it looks like iShares has cut fees on a fair number of funds as of Friday. Ones I've noticed in particular:

IXUS (Total International): 11 -> 10 bps
MUB & SUB (Muni Bonds): 25 -> 7 bps
CSJ/CIU/CRED/CLY (various credit bonds) 15 or 20 bps -> 6 bps

Now if they could just get Treasury and Smallcap value funds that are competitive. :moneybag
Bump to this thread. I was doing some TLHing on my bond funds this week and was pleasantly surprised to learn this. MUB and SUB are the two I’m most excited about, as I am at Schwab and don’t have many good low cost/low trading fee muni bond options. Schwab charges a something like a $76 dollar fee to buy mutual funds form Vanguard :shock: , so going the ETF route is usually neccessary to keep trading fees reasonable.
Last edited by mrspock on Sat Nov 10, 2018 12:19 pm, edited 1 time in total.

saintsfan342000
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Re: iShares fee cuts

Post by saintsfan342000 » Thu Nov 08, 2018 4:18 pm

MikeMak27 wrote:
Sun Jun 03, 2018 8:59 pm
It appears SCZ (small cap developed international) went from 0.40% to 0.39% as of March 31st, 2018.
Still awfully expensive compared to VSS (0.17%), though SCZ has outperformed significantly these last few years.

stlutz
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Re: iShares fee cuts

Post by stlutz » Fri Nov 09, 2018 9:27 pm

I do have to say that I find it unreasonable that iShares is still charging .15% for their Treasury bond ETFs. IEF hold 12 bonds...

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unclescrooge
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Re: iShares fee cuts

Post by unclescrooge » Sat Nov 10, 2018 1:54 am

mrspock wrote:
Thu Nov 08, 2018 12:09 pm
stlutz wrote:
Sun Jun 03, 2018 8:49 pm
Didn't see an article or a press release anywhere, but it looks like iShares has cut fees on a fair number of funds as of Friday. Ones I've noticed in particular:

IXUS (Total International): 11 -> 10 bps
MUB & SUB (Muni Bonds): 25 -> 7 bps
CSJ/CIU/CRED/CLY (various credit bonds) 15 or 20 bps -> 6 bps

Now if they could just get Treasury and Smallcap value funds that are competitive. :moneybag
Bump to this thread. I was doing some TLHing on my bond funds this week and was pleasantly surprised to learn this. MUB and SUB are the two I’m most excited about, as I am at Schwab and don’t have mnay good low cost/low trading fee muni bond options. Schwab charges a something like a $76 dollar fee to buy mutual funds form Vanguard :shock: , so going the ETF route is usually neccessary to keep trading fees reasonable.
Also, MUB is commission-free sat TD AMERITRADE.

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