BlackRock Cuts Active ETF Fees

Just a few weeks after BlackRock’s actively managed “Carbon Transition” ETFs hit the market with a thunderous boom, the issuer made dramatic cuts to the funds’ expense ratios.

Upon launch, the BlackRock U.S. Carbon Transition Readiness ETF (LCTU) gathered $1.25 billion in assets on its first day, making it the most successful ETF launch ever. The BlackRock World ex U.S. Carbon Transition Readiness ETF (LCTD) didn’t do too badly either, garnering $475 million during the same time period.

Now, BlackRock has upped the stakes even further by slashing the prices on both funds. LCTU’s expense ratio was halved from 0.30% to 0.15%, while LCTD’s price was cut from 0.35% to 0.20%, effective April 27.

LCTU and LCTD both invest in companies that are likely to benefit from global efforts to reduce carbon emissions. The move brings their pricing into closer alignment with the globally focused iShares MSCI ACWI Low Carbon Target ETF (CRBN) and the SPDR MSCI ACWI Low Carbon Target ETF (LOWC), which both tilt their portfolios toward companies with lower carbon footprints. Those ETFs charge 0.15% and 0.14%, respectively.

Contact Heather Bell at [email protected]