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A few months ago BlackRock launched low-cost ETFs for global infrastructure and property (www.investordaily.com.au)

submitted 1 year ago* (last edited 1 year ago) by [email protected] to c/[email protected]

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I haven't seen much discussion about this, but noticed them when perusing some PDS's. The headliner is that they both have fees of 0.15%, lower than everyone else's equivalent offerings in the Australian market:

Global listed infrastructure:

Provider	Ticker	Fees*	AUD Hedged?
BlackRock	GLIN	0.15%	Yes
VanEck	IFRA	0.31%	Yes
Vanguard	VBLD	0.48%	No

Global listed property:

Provider	Ticker	Fees*	AUD Hedged?
BlackRock	GLPR	0.15%	Yes
VanEck	REIT	0.30%	Yes
State Street	DJRE	0.54%	No

* Total estimated fees, as taken from most recent PDS for each product at time of posting. Includes management fees (including indirect costs if broken down separately), plus transaction costs.

VanEck already recently reduced the fees on their two offerings a lot, but now BlackRock is half of that again.

Since it's listed (not unlisted) infra / property there's less diversification benefit, but hey it's being offered for cheap now.

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[–] [email protected] 1 points 8 months ago* (last edited 8 months ago) (1 children)

Are they making bank on the hedging ????

[–] [email protected] 1 points 8 months ago* (last edited 8 months ago) (1 children)

The hedging cost should be part of the fee?

[–] [email protected] 1 points 8 months ago (1 children)

No idea , woukd be nice to know. Are there unhedged funds from them with low fees?

[–] [email protected] 1 points 8 months ago* (last edited 8 months ago)

Based on my recollection of the PDS (remember that I read these 4 months ago), the cost of hedging is built into the fee shown in my table.

Afaik they're not currently offering an unhedged version of these ones. The cost of hedging is pretty small in absolute terms though, for Blackrock's other stuff I think it's around 0.03% difference between the hedged/unhedged.