iShares Files For iShares Strategic Beta U.S. Small Cap Fund ETF

iShares has filed paperwork with the SEC for a “iShares Strategic Beta U.S. Small Cap Fund.” The iShares Strategic Beta U.S. Small Cap Fund (the “Fund”) seeks long-term capital appreciation. They did not specify a trading symbol or expense ratio in the initial filing.

Principal Investment Strategies

The Fund seeks to achieve its investment objective by investing, under normal circumstances, at least 80% of its net assets in equity securities of U.S. small-capitalization issuers. The Fund is an exchange-traded fund (“ETF”), but does not seek to replicate the performance of a specified index. The Fund will seek to maintain strategic exposure to U.S. small-capitalization stocks with targeted investment characteristics. BFA utilizes a proprietary investment process to assemble an investment portfolio from a defined group of U.S. small-capitalization stocks that seeks to emphasize companies within the group that exhibit certain quantitative investment characteristics, such as high quality earnings, low relative valuation and smaller relative market capitalization, and de-emphasize companies that lack such characteristics. The investment process is intended to provide an increased exposure to securities of companies with higher quality earnings, lower relative valuations and smaller relative market capitalizations than would a fund that seeks to replicate the performance of a broad U.S. small-capitalization stock index. Companies in the universe of U.S. small-capitalization securities include consumer discretionary, financial and industrial companies.

The Fund may have a higher portfolio turnover than funds that seek to replicate the performance of an index.

The Fund will not invest in swap agreements, futures contracts or option contracts, but may invest in currency forwards for hedging and trade settlement purposes.

The Fund may lend securities representing up to one-third of the value of the Fund’s total assets (including the value of the collateral received).

For the complete filing click: HERE

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