- BlackRock has launched two iShares funds in the US buffered ETF market with significantly lower annual fees of 50bp.
- US buffered ETFs attracted $11.1bn in inflows in 2022 and have already attracted $4.6bn year to date.
- BlackRock's entry into the market is expected to put pressure on fees, potentially settling below 40bp in the longer term.
- The largest providers in the US buffered ETF category are Innovator Capital Management and First Trust.
- Investors in BlackRock's buffered ETFs will not receive regular dividend income, unlike other providers.
Central banks around the world are pausing tightening campaigns as inflation eases and economies slow. Inflation-targeting regimes are keeping their own houses in order, while the US Fed's key inflation gauges fell to the slowest annual paces since late 2021.
Two massive earthquakes on Monday have devastated cities and towns across Turkey and Syria, with death toll of over 16,000. This is one of the worst natural disasters this century, alongside the 2004 Sumatran Tsunami, 2010 Haiti earthquake and 2008 Cyclone Nargis.
A raft of U.S. data and European inflation numbers will give guidance on how the world's top central banks will navigate the way ahead, including the hotly debated "no landing" scenario. Reports on U.S. durable goods orders, home prices, manufacturing and consumer confidence threaten to cement expec