BlackRock iShares to launch the Australian market’s lowest-cost Infrastructure and Real Estate ETFs
Jason Collins
BlackRock Australia has announced the upcoming launch of two new core ETFs – the iShares Core FTSE Global Infrastructure (AUD Hedged) ETF (GLIN) and the iShares Core FTSE Global Property ex Australia (AUD Hedged) ETF (GLPR) – as part of iShares unwavering commitment to broaden its suite of low-cost building blocks for Australian advisers and investors.
The ETFs will be priced at 20 basis point (or 0.20%) – which is less than half the current management fee of similar ETFs in the Australian market.[1] The ETFs will be available on the ASX later in May.[2]
iShares Core FTSE Global Infrastructure (AUD Hedged) ETF (GLIN), will be benchmarked to the FTSE Developed Core Infrastructure 50/50 AUD Hedged Index, offering Australian investors access to global infrastructure companies listed in developed markets. iShares Core FTSE Global Property ex Australia (AUD Hedged) ETF (GLPR) will be benchmarked to the FTSE EPRA Nareit Developed Ex Australia Rental AUD Hedged Index, offering Australian investors access to Global (ex-Australia) real estate investment trusts (REITs) and listed companies spanning office, commercial, retail, industrial and other sectors.
Jason Collins, Deputy Head of BlackRock and Head of iShares Australia, said, “Today’s announcement of our intent to introduce the lowest-cost Global Infrastructure and Global Real Estate ETFs in Australia underscores our commitment to deliver advisers and investors the most efficient suite of core building blocks in the market.”
“Australian institutional investors have long considered Global Infrastructure and Global Real Estate core assets for asset allocation purposes because they typically offer consistent income streams, inflation resilience, as well as potential long-term capital appreciation benefits.”
“BlackRock is pleased to be able to leverage our global scale, technology and portfolio construction insights to the Australian market, with the aim of further growing the ETP and advice market in Australia and democratising investing more broadly.”
Chantal Giles, Head of Wealth, BlackRock Australasia, said, “The addition of low-cost Global Property and Global Infrastructure ETFs further bolsters our local iShares Core ETF range, allowing allocators and advisers more room in their fee budget for higher cost alpha and alternative strategies or for more tactical and granular ETF exposures which may be appropriate in the current investment environment.
“BlackRock believes more Australians would benefit from access to financial advice, and today’s move by iShares further reduces the input cost in investing which we hope contributes to meaningful growth in the industry.”
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