BlackRock, Inc.(NYSE:BLK) announced today that its iShares Exchange Traded Funds (ETFs) business, the world’s largest manager of ETFs, has expanded its Factor ETF product offering with the launch of iShares MSCI USA Quality Factor ETF. This new ETF brings iShares current Factor ETF suite to four US-listed products:
- iShares MSCI USA Momentum Factor ETF (NYSEArca:MTUM)
- iShares MSCI USA Size Factor ETF (NYSEArca:SIZE)
- iShares MSCI USA Value Factor ETF (NYSEArca:VLUE)
- iShares MSCI USA Quality Factor ETF (NYSEArca:QUAL)
Each iShares Factor ETF provides investors with index-based access to a specific factor. Factors are a set of investment characteristics that 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.
The iShares MSCI Factor ETFs were designed at the request of institutional investors, such as Arizona State Retirement System (ASRS), which collaborated with BlackRock and seeded the four Factor ETFs. Investors may desire exposure to specific individual factors so they can overweight or hedge a single factor that has historically explained a significant part of companies’ return and risk over the long-term. MSCI is also a predominant choice for institutional investors.
Patrick Dunne, Head of iShares Global Markets and Investments commented:
“We are excited to extend our Factor ETF offering with the launch of the iShares MSCI USA Quality Factor ETF, which was possible through close collaboration with clients such as ASRS and through our partnership with MSCI. iShares launched these products based on client demand for index-based exposure to factors that can help them adjust the factor-risk exposure within their equity portfolio.”
BlackRock is a leader in investment management, risk management and advisory services for institutional and retail clients worldwide. At June 30, 2013, BlackRock’s AUM was $3.857 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 June 30, 2013, the firm had approximately 10,700 employees in 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.
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, tax efficiency 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 visitingwww.iShares.com. Read the prospectus carefully before investing.
Investing involves risk, including possible loss of principal. Diversification may not protect against market risk or loss of principal.
In addition to the normal risks associated with investing, narrowly focused investments may exhibit higher volatility. Stocks that previously exhibited high momentum may not experience continued positive momentum or may experience more volatility than the market as a whole. Value securities are those issued by companies that may be perceived as undervalued. Value securities may fail to appreciate for long periods of time and may never realize their full potential value. The value of the securities in the iShares MSCI USA Size ETF’s portfolio may fluctuate, sometimes rapidly and unpredictably. The value of a security may fluctuate due to factors affecting markets generally or particular industries. Securities in the iShares MSCI USA Size ETF’s portfolio may be subject to price volatility and the prices may not be any less volatile than the market as a whole and could be more volatile. The index underlying iShares MSCI USA Quality Factor ETF seeks to identify common stocks with high return on equity, stable year-over-year earnings growth and low debt-to-equity, but there is no guarantee that the past performance of these stocks will continue. Companies that issue these stocks may experience lower than expected returns or may experience negative growth, as well as increased leverage, resulting in lower than expected or negative returns.
The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”). The iShares Funds are not sponsored, endorsed, issued, sold or promoted by MSCI, Inc., nor does this company make any representation regarding the advisability of investing in the Funds. BlackRock is not affiliated with the company listed above
© 2013 BlackRock. All rights reserved. iSHARES and BLACKROCK are registered and unregistered trademarks of BlackRock. All other marks are the property of their respective owners. iS-10313-0713
Contacts – BlackRock/iShares:
¹Source: BlackRock, Global Return Premiums on Earnings Quality, Value and Size, January 7, 2013.
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