Investment giant BlackRock, the world’s largest provider of exchange-traded funds, has rolled out a European version of its popular “iShares Core” ETF series.

BlackRock, the world’s largest provider of exchange-traded funds, has rolled out a suite of low cost ETF portfolio building blocks in Europe.

The series, which consists of 14 ETFs, is designed to provide European investors with low cost access to some of the core portfolio building blocks most favoured by investors across the continent.

The introduction of the European series follows the launch of similar product suites in the US in 2012 and in Canada earlier this year, and comes on the back of impressive growth and evolution in the region’s ETF market.

Assets under management in European listed ETFs have grown 23% annually over the last five years as an ever increasing number of investors – retail, intermediary and institutional – have come to appreciate the benefits offered by ETFs, including transparency, liquidity, diversification and, perhaps most notably, their low cost.

The series has been constructed from 13 existing ETFs, many of which have had their expense ratios reduced, and one newly launched ETF, the iShares Core MSCI Emerging Markets IMI UCITS ETF. Of the 14 ETFs, nine invest in equities and five in fixed income. All of the ETFs are physically replicating, meaning they physically hold underlying index securities.

The series provides is particularly suited to the needs of financial intermediaries, such as independent financial advisers (IFAs), and their clients, and can be complemented with other ETFs that address individual investors’ more specific investment objectives – from earning income in retirement to capitalising on market opportunities in the shorter-term.

Commenting on the launch, Rachel Lord, Head of iShares for EMEA, said: “ETFs are coming of age in Europe. The industry is at a tipping point for mass market usage. What started as a tool for institutions has now been adopted by a broad spectrum of investors. We are seeing a shift in usage as passive investments increasingly move to the core of client portfolios and investors use them to build low cost and diversified solutions for the long term.”

She added: “For the iShares Core Series we’ve taken the most popular markets investors want exposure to and ensured our ETFs are attractively priced without compromising on quality.  As the ETF market evolves, our clients’ needs change and we respond; the iShares Core Series is testament to this.”

Mark Johnson, Head of UK Sales, iShares, commented: “Retail investors, and the intermediaries and platforms they invest through, will be a key driver of ETF industry growth. Passive funds are becoming a key starting point for many discussions on portfolio design and the iShares Core series gives advisers the building blocks they need to create cost effective solutions for their clients.”

The series comprises the following ETFs:

(TER in brackets)

iShares Core FTSE 100 UCITS ETF (10 bps)
iShares Core EURO STOXX 50 UCITS ETF (10 bps)
iShares Core S&P 500 UCITS ETF (7 bps)
iShares Core MSCI Japan IMI UCITS ETF (20 bps)
iShares Core MSCI Pacific ex Japan UCITS ETF (20 bps)
iShares Core MSCI World UCITS ETF (20 bps)
iShares Core MSCI Emerging Markets IMI UCITS ETF (25 bps)
iShares Core UK Gilts UCITS ETF (20 bps)
iShares Core £ Corporate Bond UCITS ETF (20 bps)
iShares Core Euro Government Bond UCITS ETF (20 bps)
iShares Core Euro Corporate Bond UCITS ETF (20 bps)
iShares Core DAX UCITS ETF (DE) (16 bps)
iShares Core SPI ETF (CH) (10 bps)
iShares Core CHF Corporate Bond ETF (CH) (15 bps)