iShares cuts charge on US ETF

iShares has cut the total expense ratio (TER) on the accumulation share class of its S&P 500 ETF to 7bps in a further bid to undercut competitors.

However, the group is keeping the fee on the more popular distribution share class unchanged at 40bps, despite calls from fund buyers to lower this fee in line with other price cuts. The latest fee cut follows a move in September to cut the TER on the accumulation share class of the ETF to 15bps,from 20bps previously. Adam Laird, passive investment manager at Hargreaves Lansdown, said: "Lower costs is great news for investors. Prices have been falling consistently in ETFs and tracker funds and investors are benefitting. This change could put pressure on other providers to follow suit...