BlackRock Forges Two-Tiered ETF Strategy to Fend Off Vanguard
- Market leader sells cheap and expensive funds at the same time
- Catering to both advisers and big traders spurs record inflows
Pedestrians pass in front of BlackRock Inc. headquarters in New York, U.S., on Wednesday, Jan. 11, 2017. BlackRock Inc. is scheduled to release earning figures on January 13.
Photographer: Victor J. Blue/BloombergBlackRock Inc. signaled its willingness to engage in a price war last October by cutting fees on 15 exchange-traded funds, going head-to-head with faster-growing ETF rivals Vanguard Group and Charles Schwab Corp. in the fight for investors flocking to passive products.
“A new era is dawning for advisers and long-term investors,” Mark Wiedman, global head of iShares, BlackRock’s $1.4 trillion ETF unit, said at the time.