BlackRock Marks A Decade of Providing Affordable, Convenient Market Access to American Investors

Rhea-AI Summary

BlackRock has announced the addition of the iShares Core Dividend ETF (Cboe: DIVB) to its iShares Core ETF lineup, reducing its management fee from 0.25% to 0.05%. This positions DIVB as the lowest-cost dividend ETF in the U.S., with a fee of just 5bps. BlackRock aims to provide affordable investment options for clients seeking diversified income strategies, especially in inflationary environments. The launch aligns with BlackRock's ongoing commitment to investment affordability, having saved investors $338 million in fees since 2015.

Positive

• Launch of the iShares Core Dividend ETF (DIVB) expands low-cost investment options.
• Reduced management fee from 0.25% to 0.05%, making it the lowest-cost dividend ETF in the U.S.
• Potential for DIVB to outperform in inflationary and rising interest rate environments.
• iShares franchise has grown to nearly $800 billion in assets since 2012, showing strong investor trust.

Negative

• None.

Adds U.S. Dividend ETF to expand iShares Core ETF franchise

Reduces fee on iShares Core Dividend ETF (DIVB) from 0.25% to 0.05%

NEW YORK--(BUSINESS WIRE)-- Today, BlackRock announced the selection of the iShares Core Dividend ETF (Cboe: DIVB) to its roster of iShares Core ETFs, entering the franchise as the lowest-cost dividend ETF trading in the U.S. at 5bps¹, or 50 cents for every $1,000 invested.

DIVB enters the iShares Core ETF lineup to increase the options of low-cost, diversified income-seeking investment strategies for clients, as these types of exposures have the potential to outperform during periods of inflation and rising interest rates.

“Since the launch of iShares Core ETFs in 2012, clients have entrusted nearly $800 billion² in assets as they’ve identified iShares Core ETFs as an efficient way to build a diversified long-term investment portfolio,” said Armando Senra, Head of iShares Americas at BlackRock. “The lineup has nearly tripled over the decade, part of BlackRock’s commitment to help people achieve financial goals like retirement no matter the market climate.”

iShares Core Equity ETFs have not made a capital gain distribution since BlackRock introduced the iShares Core ETF franchise, helping people minimize taxes and keep more of what they earn.

Commitment to Investment Affordability

Across 400 listed ETFs, U.S. iShares investors have saved $338 million in fee reductions since 2015³, keeping more of what people earned within their portfolios. As the world’s largest ETF issuer by AUM, iShares has consistently demonstrated a commitment to pass the benefits of scale on to its clients.

“With current market conditions our clients are revisiting their investments, looking to build resilience while searching for income,” added Senra. “We believe iShares ETFs have a place in most Americans’ portfolios because they offer diversification, value and efficiency which are key ingredients in building wealth over time.”

iShares debuted in 1996 with the mission to make investing more affordable and accessible so more and more people can experience financial well-being. For more information on iShares Core ETFs, please click here.

Carefully consider the Funds' investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds' prospectuses or, if available, the summary prospectuses which may be obtained by visiting www.iShares.com or www.blackrock.com. Read the prospectus carefully before investing.

Investing involves risk, including possible loss of principal.

Transactions in shares of ETFs may result in brokerage commissions and may generate tax consequences. All regulated investment companies are obliged to distribute portfolio gains to shareholders. Past distributions are not indicative of future distributions. Diversification may not protect against market risk. There is no guarantee any fund will pay dividends.

This information should not be relied upon as research, investment advice, or a recommendation regarding any products, strategies, or any security in particular. This material is strictly for illustrative, educational, or informational purposes and is subject to change.

Prepared by BlackRock Investments, LLC, member FINRA.

©2022 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are trademarks of BlackRock, Inc., or its subsidiaries in the United States and elsewhere. All other marks are the property of their respective owners.

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¹ A basis point (bps) is one hundredth of one percent.
² Source: BlackRock, as of October 21, 2022.
³ Source: BlackRock, as of October 13, 2022. Cumulative cost-savings figure is calculated by taking the difference between the previous fund expense ratio and the new fund expense ratio from 2015 through October 13, 2022, multiplied by the fund assets under management at the time of the fund reduction. Methodology does not account for compounding savings over time.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221024006066/en/

Media:

Luke Shane

Luke.shane@blackrock.com

646-592-1672

Rachel Waxman

Rachel.waxman@blackrock.com

646-231-8328

Source: BlackRock

FAQ

What is the iShares Core Dividend ETF (DIVB) and its management fee?

The iShares Core Dividend ETF (Cboe: DIVB) is the lowest-cost dividend ETF in the U.S., with a management fee reduced from 0.25% to 0.05%.

How has BlackRock's iShares ETF lineup performed in terms of asset growth?

Since its launch in 2012, BlackRock's iShares ETF lineup has attracted nearly $800 billion in assets.

What commitment has BlackRock made regarding investment affordability?

BlackRock has committed to investment affordability, saving U.S. iShares investors $338 million in fee reductions since 2015.

Why is the launch of DIVB significant for investors?

The launch of DIVB is significant as it provides a low-cost, diversified income-seeking investment option, especially beneficial during inflationary periods.