iShares, the Exchange Traded Funds (ETFs) business of BlackRock (NYSE:
BLK), is expanding its factor ETF line-up with the launch tomorrow of
two iShares Enhanced International ETFs. The iShares Enhanced
International Large-Cap ETF (NYSEArca: IEIL) and iShares Enhanced
International Small-Cap ETF (NYSEArca: IEIS) seek to provide investors
with long-term capital appreciation and are managed using BlackRock
research rather than tracking an index.
The new iShares ETFs complement two iShares U.S. Enhanced ETFs that were
launched in April 2013. They are similar to the iShares U.S. Enhanced
ETFs in that they too were designed in partnership with Registered
Investment Advisors (RIAs) who want access to multiple factors –
quality, value and size – packaged in an iShares ETF to help them manage
equity exposures and risk. The iShares Enhanced ETFs seek to provide
competitive risk-adjusted returns compared to the broad large-cap or
small-cap market.
Patrick Dunne, Head of iShares Global Markets and Investments,
commented:
“Factor investing has become increasingly popular as investors look for
opportunities to potentially outperform the market over the long-term.
We’ve had a positive response from investors on the entire iShares
Factor ETF suite, which currently has over $7.3 billion in assets under
management (AUM) at February 21, 2014.
“The new iShares Enhanced International ETFs combine well-known factors
and provide investors with easy access to multi-factor strategies based
on BlackRock’s insights. They are of interest to investors who prefer a
blending of factors in a single ETF to effectively maximize
diversification and manage risk.”
Factors are a set of investment characteristics which explain the risk
and return behavior of an asset or stock. Every asset has a unique set
of factor exposures -- such as quality, value, size and momentum -- that
influence the asset’s return. Factor investing is a well-documented,
differentiated approach to traditional market-capitalization investing.
iShares currently offers a suite of factor products: four iShares MSCI
USA Factor ETFs that focus on single factors, four iShares Minimum
Volatility ETFs that concentrate on volatility reduction and, with the
launch today, four iShares Enhanced ETFs that provide multi-factor
strategies.
About BlackRock
BlackRock is a leader in investment management, risk management and
advisory services for institutional and retail clients worldwide. At
December 31, 2013, BlackRock’s AUM was $4.324 trillion. BlackRock helps
clients meet their goals and overcome challenges with a range of
products that include separate accounts, mutual funds, iShares®
(exchange-traded funds), and other pooled investment vehicles. BlackRock
also offers risk management, advisory and enterprise investment system
services to a broad base of institutional investors through BlackRock
Solutions®. Headquartered in New York City, as of December 31, 2013,
the firm had approximately 11,400 employees in more than 30 countries
and a major presence in key global markets, including North and South
America, Europe, Asia, Australia and the Middle East and Africa. For
additional information, please visit the Company’s website at www.blackrock.com.
About iShares
iShares is a global product leader in exchange traded funds with over
600 funds globally across equities, fixed income and commodities, which
trade on 20 exchanges worldwide. The iShares Funds are bought and sold
like common stocks on securities exchanges. The iShares Funds are
attractive to many individual and institutional investors and financial
intermediaries because of their relative low cost and trading
flexibility. Investors can purchase and sell shares through any
brokerage firm, financial advisor, or online broker, and hold the funds
in any type of brokerage account. The iShares customer base consists of
the institutional segment of pension plans and fund managers, as well as
the retail segment of financial advisors and high net worth individuals.
Carefully consider the iShares Funds’ investment objectives, risk
factors, and charges and expenses before investing. This and other
information can be found in the Funds’ prospectuses, which may be
obtained by calling 1-800-iShares (1-800-474-2737) or by visiting www.iShares.com.
Read the prospectus carefully before investing.
Investing involves risk, including possible loss of principal.
Transactions in shares of the iShares Funds will result in brokerage
commissions and will generate tax consequences. iShares Funds are
obliged to distribute portfolio gains to shareholders. Shares of the
iShares Funds may be sold throughout the day on the exchange through any
brokerage account. However, shares may only be redeemed directly from a
Fund by Authorized Participants, in very large creation/redemption
units. There can be no assurance that an active trading market for
shares of an ETF will develop or be maintained. Diversification may not
protect against market risk or loss of principal.
The Funds do not seek to replicate the performance of a specified index.
The Funds may have a higher portfolio turnover than funds that seek to
replicate the performance of an index. The Funds seek to provide
exposure to large- and small-capitalization stocks that emphasize
certain quantitative investment characteristics (“factors”), including,
but not limited to, cash earnings, earnings variability, leverage,
price-to-book ratio and market capitalization. There can be no assurance
that exposure to such investment factors will enhance the Funds’
performance over time. It is expected that exposure to such investment
factors will detract from performance in some market environments,
perhaps for extended periods. In such circumstances, the Funds’
investment process will seek to maintain exposure to the targeted
investment factors and will not adjust to target different factors.
Small-capitalization companies may be less stable and more susceptible
to adverse developments, and their securities may be more volatile and
less liquid than larger capitalization companies.
International investing involves risks, including risks related to
foreign currency, limited liquidity, less government regulation and the
possibility of substantial volatility due to adverse political, economic
or other developments.
The iShares Funds are distributed by BlackRock Investments, LLC
(together with its affiliates, “BlackRock”).
© 2014 BlackRock. All rights reserved. iSHARES and BLACKROCK are
registered and unregistered trademarks of BlackRock. All other marks are
those of their respective owners.
Copyright Business Wire 2014