US-based asset manager BlackRock has launched two new equity income exchange-traded funds (ETFs) that aim to offer investors access to companies that generate consistent dividends.
The two iShares-branded funds will provide exposure to companies with strong income generation potential relative to the broader market.
The funds will be screened to only include companies that have a 30 per cent higher dividend yield than the parent universe.
Securities will then be screened according to their earnings quality and to ensure that the dividends they pay are both sustainable and persistent over time.
The two new funds, MSCI World Quality Dividend and MSCI Euro Quality Dividend, complement the existing iShares MSCI USA Quality Dividend Ucits ETF, and will bring the range of iShares dividend ETFs to 14.
Manuela Sperandeo, head of iShares specialist sales at BlackRock, said: “Despite a return to monetary policy normalisation in the US, rates look set to remain low compared to historic levels both in the US and Europe.
“In this environment, it can make sense to look for investments that aim to provide a steady stream of income.”
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