Blackrock iShares

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Flag of the United States.svg.png This article contains details specific to United States (US) investors. Acting on fund or ETF suggestions in it may have harmful US tax consequences for non-US investors.

Blackrock iShares is the largest manager of exchange traded funds in both the United States and across the globe. Blackrock iShares are available in the United States and Canada; the United Kingdom; continental Europe; Mexico and Latin America; and in Asia and Australia. At year end 2016, Blackrock iShares was managing $983.453 billion in U.S. assets. [1]

In the United States, Blackrock iShares track indexes provided by Barclays Capital; Cohen & Steers; Dow Jones; FTSE; FTSE Xinhua; iBoxx; JP Morgan; Morningstar; MSCI; NASDAQ: the NYSE; Russell; and Standard & Poors.

History

Annual Growth of iShares
Assets Under Management (AUM)
[2]
Year AUM (millions)
2009 535,201
2010 571,251
2011 593,356
2012 752,706
2013 914,372
2014 1,024,228
2015 1,092,561
2016 1,287,879
2017 1,752,239

A timeline of the history of what is now Blackrock iShares:

  • 1996: Barclays Global Investors (BGI) created when Barclays bought Wells Fargo Nikko Advisors (a joint venture between San Francisco-based Wells Fargo & Co. and Tokyo-based Nikko Cordial Securities Inc.) and merged it with its BZW Investment Management unit. [3] The year saw the introduction of World Equity Benchmark (WEBs) exchange traded funds. WEBs were single country stock funds based on MSCI single country indexes. [4]
  • 2000: Launch of iShares ETFs in the United States, United Kingdom, and Canada. [4]
  • 2001: Launch of iShares ETFs in Hong Kong and Japan. [4]
  • 2002: iShares fixed income ETFs launched in the United States. [4]
  • 2006: Barclays buys the German exchange-traded funds provider Indexchange from HypoVereinsbank for 240 million euros. The purchase enables iShares to expand its presence in the European markets. [5]
  • 2007: Launch of iShares in Mexico; launch of high yield bond and municipal bond ETFs in the United States. [4]
  • 2008: First all ETF 529 savings plan created for fee-only advisors. [4]
  • 2009: BGI sells iShares to Blackrock for $13.5 billion; [6] launched ETF (401k) for financial advisors. [4]
  • 2013: Blackrock iShares purchases Credit Suisse's ETFs. [7]

The annual growth of iShares assets under management (AUM) is documented in the above table. (View Google Spreadsheet in browser, then File --> Download as to download the file.)
Note: If the spreadsheet is blank, select a different sheet, then back to that sheet. The image will be refreshed.

iShares ETF lineup

The extensive lineup of iShares ETFs allows investors to implement a wide variety of low cost indexed portfolios. In October 2012, iShares introduced a package of ten low expense ETFs (six existing funds plus four new issues) designed and marketed for investors to implement strategic asset allocations.[8] In March 2021, iShares reduced the ER of its Morningstar style-box ETFs.[9] The Core funds are shown in the figure below, with the lowest ER fund for each asset class listed in the table.

iShares Core Funds
Isharescoreetfs.png
ETF Ticker Expense
Ratio
Inception Fund link Morningstar link
iShares Core S&P Total U.S. Stock Market ETF ITOT 0.03% 1/20/2004 Overview - iShares ITOT
iShares Core S&P 500 ETF IVV 0.03%
5/15/2000 Overview - iShares IVV
iShares Morningstar Mid-Cap ETF IMCB 0.04% 6/28/2004 Overview - iShares IMCB
iShares Morningstar Small-Cap ETF ISCB 0.04% 6/28/2004 Overview - iShares ISCB
iShares Core MSCI Total International Stock ETF IXUS 0.09% 10/18/2012 Overview - iShares IXUS
iShares Core MSCI EAFE ETF IEFA 0.07% 10/18/2012 Overview - iShares IEFA
iShares Core MSCI Emerging Markets ETF IEMG 0.11% 10/18/2012 Overview - iShares IEMG
iShares Core Total U.S. Bond Market ETF AGG 0.04% 9/22/2003 Overview - iShares AGG
iShares Core Short-Term U.S. Bond ETF ISTB 0.06% 10/18/2012 Overview - iShares ISTB
iShares Core Long-Term U.S. Bond ETF ILTB 0.06% 12/8/2009 Overview - iShares ILTB

The following table compares ETF offerings from iShares, Schwab, SPDR and Vanguard. All ETFs trade commission-free at most brokerages.

US Stock iShares Schwab SPDR Vanguard
Total US Market ITOT 0.03% SCHB 0.03% SPTM 0.03% VTI 0.03%
Large-Cap ILCB 0.03% SCHX 0.03% SPLG 0.03% VOO 0.03%
Mid-Cap IMCB 0.04% SCHM 0.04% SPMD 0.05% VO 0.04%
Small-Cap ISCB 0.04% SCHA 0.04% SPSM 0.05% VB 0.05%
Large-Cap Growth IUSG 0.04% SCHG 0.04% SPYG 0.04% VUG 0.04%
Large-Cap Value IUSV 0.04% SCHV 0.04% SPYV 0.04% VTV 0.04%
Small-Cap Growth ISCG 0.06% SLYG 0.15% VBK 0.07%
Small-Cap Value ISCV 0.06% SLYV 0.15% VBR 0.07%
Dividend ILCV 0.04% SCHD 0.06% SPYD 0.07% VYM 0.06%
Real Estate USRT 0.08% SCHH 0.07% XLRE 0.12% VNQ 0.12%
International Stock iShares Schwab SPDR Vanguard
Total International IXUS 0.09% VXUS 0.08%
International Large-Cap CWI 0.30% VEU 0.08%
International Small-Cap VSS 0.11%
Developed Markets IDEV 0.05% SPDW 0.04% VEA 0.05%
Emerging Markets IEMG 0.11% SPEM 0.11% VWO 0.10%
Developed Large-Cap EFA 0.32% SCHF 0.06%
Developed Small-Cap SCZ 0.40% SCHC 0.11% GWX 0.40%
Emerging Large-Cap EEM 0.70% SCHE 0.11%
Emerging Small-Cap EEMS 0.71% EWX 0.65%
Global Stock iShares Schwab SPDR Vanguard
Total World Stock ACWI 0.32% SPGM 0.09% VT 0.08%
US Bond iShares Schwab SPDR Vanguard
Total Bond AGG 0.04% SCHZ 0.04% SPAB 0.03% BND 0.035%
Short-Term Treasury SHY 0.15% SCHO 0.05% SPTS 0.06% VGSH 0.05%
Intermediate Treasury GOVT 0.05% SCHR 0.05% SPTI 0.06% VGIT 0.05%
Long-Term Treasury TLT 0.15% SCHQ 0.05% SPTL 0.06% VGLT 0.05%
Short-Term TIPS STIP 0.05% VTIP 0.05%
Intermediate TIPS TIP 0.19% SCHP 0.05% SPIP 0.12%
Short-Term Aggregate ISTB 0.06% BSV 0.05%
Intermediate Aggregate IMTB 0.06% BIV 0.05%
Long-Term Aggregate ILTB 0.06% BLV 0.05%
International Bond iShares Schwab SPDR Vanguard
Total International Bond IAGG 0.08% BNDX 0.08%


Portfolio construction

Examples of Bogleheads-style investing portfolios using iShares ETFs can be found in Lazy portfolios.

See also

References

  1. ETF League Table, indexuniverse.com. December 30, 2016.
  2. Annual Reports & Proxy Statements | BlackRock, viewed November 23, 2017.
  3. Barclays to Acquire a Unit Of Wells Fargo and Nikko, New York Times news release, June 22, 2009.
  4. 4.0 4.1 4.2 4.3 4.4 4.5 4.6 About iShares
  5. Barclays buys HVB's Indexchange unit for 240 million euros, news release, dans le monde, November 7, 2006
  6. BlackRock snares BGI in blockbuster $13.5 billion deal, June 12, 2009, Market Watch
  7. BlackRock's iShares to buy Credit Suisse's ETF unit, news release, January 10, 2013.
  8. "iShares Cuts Fees On 6 Funds, Unveils 'Core']". Etf.com. October 15, 2012.
  9. "Product Update: iShares Morningstar U.S. Equity Style Box ETFs" (PDF). Blackrock iShares. March 22, 2021.

External links

Bibliography