iShares cuts fees on ultra short-dated bond range

ETF provider iShares has temporarily cut fees on its ultra-short bond range in response to client demand for cash alternatives.

The group has reduced the total expense ratio (TER)from 20bps to 9bps on its Ultrashort Bond ETFs denominated in US dollars, euros and sterling. iShares said the move was made "in response to clients looking for cash alternatives". The Ultrashort Bond range aims to generate a positive yield by investing in investment grade corporate bonds, keeping duration low by maturity constraints and the use of floating rate notes. As interest rates across the developed world have dropped to record lows, investors have favoured short-dated fixed income assets, due to the increased risk associat...