(Bloomberg) – They call it "pricing for the future."
That's the lingo executives at BlackRock Inc., the world's largest asset manager, use to describe their strategy for exchange-traded funds: slashing management fees on basic products and attracting a wave of new buyers to offset the revenue lost on each individual sale.
But while scale can compensate for lower fees, much of the real cash BlackRock is seeking lies in getting the investors in these simple, cheap funds to eventually turn to something more complex — and expensive.
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