Investment manager BlackRock will expand on its iShares Factor exchange-traded fund (ETF) suite with the release of three new funds onto the Cboe Australia exchange later this month.
BlackRock stated it will add momentum, quality and value ETFs to its iShares Factor ETFs range, which allows investors to allocate to specific traits that are believed to drive returns, and will be the first iShares products listed on Cboe, priced at 25 basis points for the non-hedged version of the product.
The iShares MSCI World ex Australia Momentum ETF (IMTM) will track the index of the same name, which identifies large and mid-cap developed global companies that have performed strongly over the past six to 12 months on a risk-adjusted basis.
In addition, the iShares MSCI World ex Australia Quality ETF (IQLT) tracks the MSCI World ex Australia Quality Sector Capped Select Index, which targets large and mid-cap developed global companies that have healthy balance sheets, strong profit margins and a track record of consistent year-on-year earnings growth.
Finally, the iShares MSCI World ex Australia Value ETF (IVLU) tracks the MSCI World ex Australia Enhanced Value Index, which identifies undervalued large and mid-cap developed global companies based on strong underlying fundamentals.
“With challenging market conditions set to continue in 2024, Australian advisers and investors now have a broad selection of style ‘tilts’ available through the iShares Factor ETF suite, enabling them to be more dynamic with equities exposures and steer clear portfolio outcomes,” BlackRock Australasia iShares ETF and index investments specialist Tamara Stats said.
“IMTM enables investors to ride positive momentum and can potentially outperform during periods of economic expansion. IQLT and IHQL aim to capture global stocks with capital growth potential even during periods of economic slowdown, while IVLU and IVHG can offer portfolio resilience by giving investors targeted exposure to fundamentally sound, undervalued global stocks.
“These strategies will provide investors with additional building blocks for their portfolios, contributing to greater portfolio resilience.”
The investment manager will also reduce the fee on its existing iShares Edge MSCI World Minimum Volatility ETF (WVOL) from 30 basis points to 25 basis points to align the fund with the changes to the rest of the Factor ETF suite.''