ETFs Change Indexes, Expense Ratios

October 09, 2018

Two iShares funds are set to undergo some major changes, while one of the newest gold ETFs is lowering its expense ratio.

iShares ETFs Due For Renovation
BlackRock’s iShares unit will be giving two well-established ETFs a makeover as of Dec. 24. The $1.7 billion iShares North American Tech ETF (IGM) and the $2 billion iShares North American Tech-Software ETF (IGV) will be changing their names and indexes.

IGM will adopt the S&P North American Expanded Technology Sector Index and change its name to the iShares Expanded Tech Sector ETF, and IGV will adopt the S&P North American Expanded Technology Software Index and change its name to the iShares Expanded Tech-Software Sector ETF.

The changes are intended to accommodate the addition of the communication services sector to the Global Industry Classification Standard at the end of last month. The rejiggering of the sector classifications rendered some components of IGM and IGV ineligible for inclusion in the two ETFs, and the new indexes will allow the funds to maintain exposure to their existing holdings and dampening turnover.

The funds’ tickers will remain the same.

GraniteShares Cuts BAR’s Price

GraniteShares is lowering the expense ratio of its $283 million GraniteShares Gold Trust (BAR) from 0.20% to 0.17%, just undercutting other competing physical gold ETFs.

BAR had been the cheapest physical gold ETF when it launched in 2017, but the Perth MINT Physical Gold ETF (AAAU) and the SPDR Gold MiniShares Trust (GLDM) both rolled out this year with expense ratios of 0.18%. GraniteShares’ move puts it at the head of the pack again—by a nose.

The ETF price war that was previously mostly being fought in the plain-vanilla equity space has clearly moved to the commodity arena.

Contact Heather Bell at [email protected]

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