iShares and BlackRock announced the launch of the iShares Core Series for Canadian investors. As part of this launch the annual management fee on its iShares S&P/TSX Capped Composite Index ETF (XIC) will be lowered to 0.05%.
With $1.37 billion in AUM (as of 03/21/14) and a 13-year track record of reliably delivering Canadian equity exposure, XIC is the low-cost flagship among a total of nine existing iShares funds in the iShares Core Series, says the firm.
BlackRock Canada announced reductions to the annual management fees payable as a percentage of net asset value for all of the funds in the iShares Core Series, now ranging from 0.05% – 0.25% depending on the fund, effective as of March 25, 2014 (see table for all changes).
“As we look to build on BlackRock’s leadership position in Canada, we are taking another step to bolster our value proposition for investors,” says Noel Archard, managing director, Head of BlackRock Canada. “We have brought the benefits of our global scale to an iShares Core Series in Canada, a low-cost range of key investment exposures for long-term investors.”
| iShares Fund | Ticker | Old management fee | New management fee, effective today |
| Canadian Equity | |||
| iShares S&P/TSX Capped Composite Index ETF | XIC | 0.25% | 0.05% |
| iShares S&P/TSX Equity Income Index ETF | XEI | 0.55% | 0.20% |
| Canadian Fixed Income | |||
| iShares Canadian Short Term Corporate + Maple Bond
Index ETF |
XSH | 0.25% | 0.12% |
| iShares High Quality Canadian Bond Index ETF | CAB | 0.30% | 0.12% |
| iShares Canadian Long Term Bond Index ETF | XLB | 0.35% | 0.18% |
| International Equity | |||
| iShares S&P 500 Index ETF (CAD-Hedged) | XSP | up to 0.22% | 0.10% |
| iShares S&P 500 Index ETF | XUS | 0.14% | 0.10% |
| iShares MSCI EAFE IMI Index ETF | XEF | 0.30% | 0.20% |
| iShares MSCI Emerging Markets IMI Index ETF | XEC | 0.35% | 0.25% |