this post was submitted on 11 Nov 2023
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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 MHLoppy2@aussie.zone to c/ausfinance@aussie.zone
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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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[–] Hanrahan@lemmy.world 1 points 11 months ago* (last edited 11 months ago) (3 children)

Are they making bank on the hedging ????

[–] MHLoppy2@aussie.zone 1 points 11 months ago* (last edited 11 months ago) (1 children)

The hedging cost should be part of the fee?

[–] Hanrahan@lemmy.world 1 points 11 months ago (1 children)

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

[–] MHLoppy2@aussie.zone 1 points 11 months ago* (last edited 11 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.

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