The investment company has announced product updates to the iShares S&P/ASX Dividend Opportunities ETF (IHD) (“Fund”) as part of its routine review of the iShares product suite.
Notably, Blackrock reduced management fees by 0.07 per cent per year to 0.23 per cent.
Jason Collins, head of iShares and index investments at BlackRock Australasia, said, “BlackRock is continuously looking for ways to innovate and enhance our local iShares product line-up to meet changing client needs and to navigate evolving market conditions.”
The fund will additionally be moving to a new underlying index — previously the S&P/ASX Dividend Opportunities Index — to ensure it continues to meet Australian clients’ evolving needs.
The S&P/ASX Sustainability Screened Dividend Opportunities Index incorporates 12-month forecast dividend yield criteria and a company profitability threshold to ensure the universe of constituents continues to deliver an optimal dividend outcome.
Moreover, it applies exclusions based on Sustainalytics’ Global Standards Screening (GSS) process.
“Against the current macro backdrop, investors are increasingly turning to dividend-paying strategies in search of a regular source of income and to build resilience into portfolios,” Mr Collins advised.
He went on to say that BlackRock made these product updates in consultation with the index provider to engage with companies that are likely to pay dividends in the future, in line with client expectations.
“Reflecting BlackRock’s continued growth and ability to leverage our scale for the benefit of clients, we have also reduced the Fund’s fee from 30 bps (basis points) to 23 bps, making it one of the most affordable ETFs for income-seeking investors.
“Ultimately, these changes enable us to deliver better long-term outcomes for our clients by offering relevant exposures at a low cost to help them reach their long-term investment goals,” Mr Collins concluded.
