Bestinvest rails against iShares' S&P 500 fee revamp

Bestinvest has suspended its rating of the iShares S&P 500 ETF, after the provider announced today it will only cut the fee on the accumulating share class, and not the distribution version.

Ben Seager-Scott (pictured), senior research analyst, has previously argued the group should cut the fees on its S&P 500 product to bring it in line with competitors. However, iShares announced it will only cut the price on the accumulating share class of the iShares S&P 500 UCITS ETF, from 0.40% to 0.15%, keeping the fee for the distribution class unchanged. Seager-Scott said: "We were very disappointed the group has chosen not to address the pricing issues on the highly popular and liquid S&P 500 ETF (distributing share class). "At 40 bps, we now have serious questions over wheth...