We’re buying 10 shares of BlackRock at roughly $1,017 each. Following Monday’s trade, Jim Cramer’s Charitable Trust will own 110 shares of BLK, increasing its weighting in the portfolio to about 3.05% from about 2.8%. Among the tariff uncertainty, BlackRock is one of our worst-performing stocks Monday. While negative sentiment around a trade war is dinging all types of banks and financials, the asset manager group is under pressure after peer Vanguard announced it lowered its fees on 168 share classes across 87 funds. Vanguard said the fee reductions are expected to save investors more than $350 million this year. Due to the competitive nature of the industry and the constant battle for inflows, we would expect other asset managers, like the iShares operator BlackRock, to reduce some of their fees on competing funds. This news could slow future fee growth, but we think the magnitude of BlackRock’s more than 5% decline on Monday is too aggressive. BLK YTD mountain BlackRock YTD In addition, Vanguard’s decision to lower its fees further validates BlackRock CEO Larry Fink’s push into faster-growing opportunities like private markets. BlackRock recently closed its $12.5 billion acquisition of Global Infrastructure Partners and has two pending deals to expand its alternative assets presence. Private markets and private credit funds require established leadership and investment talent that prevent them from becoming commoditized like passive funds. (Jim Cramer’s Charitable Trust is long BLK. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
