US asset manager BlackRock has launched four iShares ETFs tracking the Stoxx Focus indices, which aim to access UK and European domestic growth by applying a revenue-based lens.
This first-to-market solution, according to the company, uses a quantitative approach to divide selected key regional indices into two distinct baskets: Domestic Focus, comprising companies that generate at least 50% of their revenues within their home region, and Foreign Focus, comprising companies that generate more than 50% of their revenues internationally.
This should allow investors to allocate more precisely when targeting either local growth dynamics or global earnings potential.
“BlackRock is expanding client access to enable investors to better express views in a more fragmented global environment,” said Vincent Denoiseux, head of product research and innovation.
“As the macro environment becomes more granular, the toolkit needs to evolve beyond traditional country classifications.
“Revenue-based approaches offer a clearer lens on where returns are generated and where risks lie, enabling more precise diversification in portfolios.”
