BlackRock has expanded its range of iShares factor ETFs with the launch of four US equity-focused funds.
The four funds are the iShares Edge MSCI USA Value Factor, Edge MSCI USA Size Factor, Edge MSCI USA Momentum Factors and Edge MSCI USA Quality Factor UCITS ETFs. Using these funds, investors can tilt their portfolios to the areas of the US equity market they believe will outperform, BlackRock said.
The funds are physically-replicating, meaning they buy the securities of the index, and each has a total expense ratio of 0.20%.
The European factor and smart beta fund industry has now surpassed $30bn in assets. With the addition of these newly-launched ETFs, the iShares European-domiciled equity range contains 31 funds, across dividend strategies, minimum volatility, single and multi-factor exposures, with $13.2bn in assets under management.
“Faced with growing political uncertainty, market volatility and low yields, investors tell us that they want a comprehensive set of tools with which to diversify risk in their portfolios,” said Manuela Sperandeo, head of iShares EMEA Specialist Sales at BlackRock.
“Different factors tend to perform in different market environments, and these four funds complement our European equity and global equity factor range allowing investors to express their views on the major global developed equity markets,” Sperandeo said.