BlackRock’s ETF brand iShares has launched three multi-factor ETFs on London Stock Exchange, offering investors exposure to value, quality, momentum and size factors.
Tom Fekete, head of EMEA Product, iShares at BlackRock, commented: “Research has shown that certain investment styles have, over time, provided a higher risk adjusted return than the overall market. These themes are well understood by investors – seeking high quality balance sheets or inexpensive stocks, for example – and have long been a staple of active mutual fund strategies.
Deborah Yang, managing director and head of Index, EMEA, at MSCI adds: “We are delighted that iShares is expanding its factor ETF range using MSCI indexes. Multi-Factor exposure is a significant and growing development in indexing, and are increasingly used by investors who want more diversification in a transparent, cost-effective way.”
The funds are physically replicating, meaning they hold the underlying constituents within the index, and have a total expense ratio ranging from 0.35% – 0.50%.