Heard someone on a podcast talk about how Vanguard’s dividend to its ‘shareholders’ is in lowered fund fees. Thought abt how iShares investors could buy $BLK and use BlackRock’s growing div as a sort of surrogate to offset fund fees.
Here’s back of envelope:
1/1

Vanguard has saved its fund holders $750M cumulatively over the past four years from lowered fees. Another $78 from lowering admiral share minimum. Unknown savings from free conversion from admiral to ETF.
2/3

BlackRock has paid $683M in cash dividends 2016-1Q 2020, float adjusted to $637M. Reinvested dividends would have returned another $404M, totaling $1B.
3/3

Offset to $1M iShares fund fees annually could be met by the dividends from 27 shares of $BLK

from great pod @NateGeraci
Vanguard’s Michael Lovett Discusses Latest ETF Fee Cuts, Advisor Fees https://etfstore.com/vanguards-michael-lovett-discusses-latest-etf-fee-cuts-advisor-fees/