BlackRock iShares Exchange Traded Funds
BlackRock has deep capabilities across index and active management and offers ETFs and index mutual funds. But what does that mean for you? It means we can provide objective help to solve problems and identify opportunities for your plan. It also means we have the flexibility to work with you to implement solutions based on your plan's specific needs.
High Fees Can Erode Plan Performance
When using iShares ETFs in retirement plans, fund management fees are transparent and record-keeping fees are separated. There are no hidden fees or cross-subsidy arrangements.
In addition, expense ratios for ETFs tend to be significantly lower than those of traditional mutual funds. In fact, higher expenses may adversely affect fund performance.
iShares ETFs and Mutual Funds
It's important to note that while both iShares ETFs and mutual funds each hold baskets of securities, some key differences do exist:
- iShares index ETFs are passively managed; they seek to track a benchmark and holdings are not altered during rising or falling markets. Performance may differ from the underlying benchmark. iShares ETFs trade on exchanges intraday at the current market price, which may differ from net asset value. In most retirement plans, however, trades are aggregated and occur at the end of the trading day. iShares ETF fees consist of an expense ratio and applicable transaction costs. In addition, with iShares ETFs, holdings are disclosed daily.
- Active mutual funds seek to outperform their benchmark. Active mutual funds may not meet their performance goals and may underperform due to the fund managers' holdings selection. Mutual funds are accessed once per day directly from the fund company at the end-of-day net asset value, less any applicable fees. Fees consist of an expense ratio and applicable redemption fees. In addition, mutual fund holdings are typically disclosed quarterly.
In retirement plans, redemption of both ETFs and mutual funds occurs through the Third Party Administrator.
For More Information
- Visit ishares.com
Seven guides and videos to help retirement plan advisors demonstrate their value.
Carefully consider the iShares Funds' investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds' prospectuses, which may be obtained by calling 1-800-iShares (1-800-474-2737) or by visiting www.iShares.com. Read the prospectus carefully before investing. Investing involves risk, including possible loss of principal.
Diversification and asset allocation may not protect against market risk. iShares transactions may result in record-keeping fees, but the savings from low annual fees can help offset these costs. Other plan fees may apply.
Investment comparisons are for illustrative purposes only and are not meant to be all-inclusive. To better understand the similarities and differences between investments, including investment objectives, risks, fees and expenses, it is important to read the products' prospectuses.
The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, "BlackRock").
The strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an offer to buy any security. There is no guarantee that any strategies discussed will be effective.
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