The three iShares FactorSelect ETFs – MSCI World UCITS ETF (IFSW), MSCI USA UCITS ETF (IFSU) and MSCI Europe UCITS ETF (IFSE) – will utilise a four-pronged investment strategy in providing access to long-term value opportunities in developed markets.
Seeking exposure to four investment factors – value, quality, momentum and size – the multi-factor funds aim to be highly diverse, while at the same time maintaining a risk level similar to that of their respective parent indices.
The physically replicating funds are available to UK and European investors with immediate effect, with the world, US and European options carrying total expense ratios of 0.5%, 0.33% and 0.35% respectively.
Tom Fekete, iShares’ head of EMEA product, said that the ETF range aims to deliver higher risk-adjusted returns versus the market through its active management-style approach.
“The FactorSelect series builds upon our existing single-factor ETFs, which provide targeted exposure to a single investment theme,” he said.
“These new multi-factor ETFs provide exposure to multiple sources of potential excess returns in a single fund, resulting in a diversified strategy that may perform well in different market conditions. Investors could consider these smart beta ETFs as a complement to traditional index and active strategies, to potentially enhance diversification and improve returns.”
