BlackRock’s iShares has launched a Factor ETF series of four products, providing access to global equity markets.
The series will focus on sources of return that cannot be isolated through traditional market capitalisation-weighted indices, with each of the exchange-traded funds (ETFs) offering targeted exposure to a specific factor, including value, size, quality and momentum.
The iShares MSCI World Value Factor Ucits ETF will provide exposure to a subset of MSCI World stocks that capture undervalued stocks based on their fundamentals. The further three products in the new series will focus on smaller capitalised companies, stocks that have recently outperformed on a risk-adjusted basis, and stocks with strong balance sheets and stable earnings.
The funds are physically replicated and each has a total expense ratio of 0.30%.
The Factor ETFs will build on the existing smart beta platform from BlackRock, which has $4.594 trillion (€0.798 trillion) in assets under management, as of June 30, 2014.
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