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BlackRock seeks ETF share classes for five active mutual funds

The five funds together held nearly $55 billion in assets as of Aug. 31, and BlackRock said existing mutual fund shareholders would not have to move their investments.

Reported · Written up by our desk · Fund Industry

BlackRock, Inc. has filed with the Securities and Exchange Commission to add ETF share classes to five of its active mutual funds, according to an ETF Trends summary of the firm’s Tuesday press release.

The five strategies held nearly $55 billion in assets as of Aug. 31, and BlackRock said the proposed ETF share classes would trade on an exchange while investing in the same portfolio as the underlying mutual funds.

BlackRock also said existing shareholders would not have to move their investments, and it highlighted differences between the vehicles, including that mutual funds are priced once a day after markets close, while ETFs trade throughout the day.

The firm attributed the move to investor demand for access through the vehicle that best fits individual preferences, and it pointed to iShares’ more than 20 years of ETF experience.

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