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iShares Core bolsters portfolio foundation

BlackRock believes SMSF trustees will see the appeal of its new proposition, iShares Core, which comprises two new exchange-traded funds (ETF).

The iShares Core MSCI World All Cap ETF and MSCI World All Cap (A$ Hedged) ETF were listed on the Australian Securities Exchange on 28 April.

These new funds, together with the iShares Core S&P/ASX 200 ETF, Composite Bond ETF and Global Corporate Bond (A$ Hedged), make up Core.

The Core offer aims to provide a foundation for the most efficient exposure possible at a low cost, without compromising on quality. The portfolio contains Australian and global equities and fixed income ETFs, providing broad market exposure. Fees range from 0.15 per cent a year to 0.26 per cent a year.

“It really simplifies the choice and you can always add additional exposure if you want to, but this is about setting a really strong foundation around high-quality, low cost, simple-to-use exposures,” iShares Australia head Jon Howie said ahead of the launch.

“As [the Australian ETF industry] develops, we see huge adoption in the adviser space and huge adoption continuing in SMSFs and for many of those investors what they’re looking to do is rather than be tactical with their allocations, which is what many investors start to use ETFs for, they’re looking for long term buy-and-hold, and that is largely what Core is about.”

Howie said he believed Core would serve investors’ long term buy-and-hold needs.

“It’s largely about making sure they have the most efficient exposure possible,” he said.

“It’s also about quality and simplicity.

“We’re hoping for a lot of interest from SMSFs for Core, not least because it simplifies the approach of robust portfolio outcomes for them.”

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