BlackRock is cutting the fee on its iShares S&P 500 index mutual fund to $1.25 per $10,000, or 0.0125%, for its largest investors. Starting July 1, investors will at least $2.5 billion will pay the lower fee, down from $4 per $10,000 previously.
The new, lower fee is just a tad above Vanguard’s 0.0100% for its S&P 500 fund for institutional investors with a minimum $5 billion invested.
The latest price cut from BlackRock, the world’s largest asset manager, continues the price war that has been raging among mutual funds and ETFs and follows previous iShares fee cuts
“It shows how the deep-pocketed asset managers are increasingly using their scale to bring index fund pricing down,” says Todd Rosenbluth Head of ETF & Mutual Fund Research, CFRA.