The world’s largest provider of ETFs says that market competition has prompted the company to drop fees for large ETFs in the coming quarter.
According to Bloomberg, BlackRock chairman and CEO Laurence D. Fink announced Monday that the company will readjust its fees after losing considerable ground to rival companies such as the Vanguard Group.
BlackRock’s domestic market share dropped 1.4 percentage points in the first six months of 2012 to 41 percent; Vanguard’s share was up 1.7 percent in the same period, reaching 18 percent.
Deposits into BlackRock’s iShares ETFs this year eclipsed $23.5 billion.
Speaking at the Barclays 2012 Global Financial Services Conference, Fink said fee structure changes will be announced next quarter.
“We expect to be announcing a whole strategy in how are we addressing the fee issue related to these large, liquid, core types of ETFs,” he told Bloomberg.