Last week BlackRock
CEO Larry Fink confirmed
] price cuts are coming, but a top Vanguard
] executive dismissed the move's importance.
"If price is taken out of the equation because it's a neutral factor, the track record of the company starts to matter," Martha King
, Vanguard's managing director of financial advisor services, told InvestmentNews
. "Are you going to choose the company that's shown a decades-long commitment to low-cost [investing] or the one that just changed its stripes. Vanguard can only do what Vanguard does best. Low-cost investing isn't a Johnny-come-lately strategy for us, it's not a loss leader strategy. It's part of our DNA."
BlackRock is expected to cut fees for ETFs in the 15 asset classes where iShares and Vanguard products directly compete.
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