Complementing the company’s existing smart beta, or factor, passive range, the new funds offer investors more nuanced risk-return profiles, iShares says.
The range has a total expense ratio of 30 basis points and are physically replicating.
The iShares MSCI World Value Factor Ucits ETF has a bias to undervalued companies, relative to fundamental value.
The iShares MSCI World Size Factor Ucits ETF is focused on smaller companies.
The iShares MSCI World Momentum Ucits ETF’s portfolio will include those stocks which have recently outperformed on a risk-adjusted basis.
The iShares MSCI World Quality Ucits ETF is skewed toward firms with strong balance sheets and stable incomes.
iShares says: “Through these funds investors are able to express factor views throughout the business cycle.
“They can be used as part of a broad portfolio to diversify portfolio risk or used as niche exposures aiming to boost portfolio performance.”
The firm’s existing smart beta range includes minimum volatility products that buys stocks with more stable share prices.
BlackRock global head of snart beta Sara says the new products are the “next step” in the firm’s 40 years of passive investment management.
“Complementing our minimum volatility products, our new factor funds allow investors to emphasise specific, high conviction investment views or construct a broadly diversified portfolio along factor dimensions with the goal of outperforming the broad equity market,” she explains.