Thursday, October 20, 2011
iShares Offers Four Low-Vol ETFs
Reported by Hung Tran
BlackRock, Inc. [see profile]
today said that its iShares Exchange Traded Funds [see profile]
business, has launched four new minimum volatility funds on the NYSE Arca for risk-aversed investors.
"In today's market environment, there is increased interest in managing risk and finding a solution via ETFs," stated Darek Wojnar
, Head of iShares Product Development at BlackRock. "Investors are seeking 'smart beta' solutions."
The new offering include: iShares MSCI Emerging Markets Minimum Volatility Index Fund
; iShares MSCI EAFE Minimum Volatility Index Fund
; iShares MSCI USA Minimum Volatility Index Fund
and iShares All Country World Minimum Volatility Index Fund
. The funds track the MSCI Minimum Volatility Indices.
iShares Launches Four Minimum Volatility ETFs to Help Investors Manage Risk
SAN FRANCISCO, CA--(Marketwire - October 20, 2011) -
BlackRock, Inc. (NYSE: BLK) today announced that its iShares® Exchange Traded Funds (ETFs) business, the world's largest manager of ETFs, has launched on the NYSE Arca four new minimum volatility funds designed to help investors manage risk in their portfolios. The new funds can help provide a portfolio with downside protection while seeking to maintain some exposure to the upside price movement.
The funds are:
- iShares MSCI Emerging Markets Minimum Volatility Index Fund (NYSE Arca: EEMV)
- iShares MSCI EAFE Minimum Volatility Index Fund (NYSE Arca: EFAV)
- iShares MSCI USA Minimum Volatility Index Fund (NYSE Arca: USMV)
- iShares All Country World Minimum Volatility Index Fund (NYSE Arca: ACWV)
"In today's market environment, there is increased interest in managing risk and finding a solution via ETFs. Investors are seeking 'smart beta' solutions," said Darek Wojnar, Head of iShares Product Development at BlackRock. "The new iShares Minimum Volatility Funds can help investors to reduce overall risk in a portfolio while retaining equity exposures. These funds can provide a complement to the core passive portfolio, helping to optimize risk-adjusted returns over the long term."
The funds track the MSCI Minimum Volatility Indices. The indices are constructed by optimizing the respective parent MSCI Indices, which are capitalization-weighted, by determining weights for securities in the indices with the lowest total risk. Index constraints such as country, sector and style exposures are applied to the optimization to ensure diversification, while broadly matching the profile of the corresponding cap-weighted MSCI index.
BlackRock is a leader in investment management, risk management and advisory services for institutional and retail clients worldwide. At September 30, 2011, BlackRock's AUM was $3.345 trillion. BlackRock offers products that span the risk spectrum to meet clients' needs, including active, enhanced and index strategies across markets and asset classes. Products are offered in a variety of structures including 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, 2011, the firm has approximately 9,700 employees in 26 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 Com pany's website at www.blackrock.com.
iShares is the global product leader in exchange traded funds with over 460 funds globally across equities, fixed income and commodities, which trade on 19 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.
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