BlackRock launches smart beta FactorSelect ETFs

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%.

Mona Dohle
Mona Dohle speaks German and Dutch, she is DACH & Benelux Correspondent for InvestmentEurope. Prior to that, she worked as a journalist in Egypt and Palestine. She started her career as a journalist working for a local German newspaper. Mona graduated with an MSc in Development Studies from SOAS and has completed the CISI Certificate in International Wealth and Investment Management.

Read more from Mona Dohle

Close Window
View the Magazine

I also agree to receive editorial emails from InvestmentEurope
I also agree to receive event communications for InvestmentEurope
I also agree to receive other communications emails from InvestmentEurope
I agree to the terms of service *

You need to fill all required fields!