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BlackRock Inc. has changed the indexes of three multifactor ETFs as it seeks to achieve better overall consistency within its factor investment range.
The 633 million dollars Ishares Stoxx World Equity multifactor ucits ETF (IS07)the 245 million dollars Ishares Stoxx Europe Equity multifactor ucits ETF (IFSD)and the 70 million dollars Ishares Stoxx USA Equity Multifactor UCITS ETF (UFSD) will move from tracking the MSCI indices to their respective Stoxx indices.
ETF names will also change to align with the new indexes.
The new indices will include a low-volatility factor and a different weighting methodology that will move from neutral equal weighting to the use of an asset allocation framework that will define the weighting of each factor.
Commenting on the changes, Axel Lomholt, CEO of Stoxx, said: “The Stoxx equity factor that was analyzed (indices) offers investors a unique methodology to target long-term potential return and diversified exposure at the same time that controls systematic risk and the integration of sustainability principles.”
Elsewhere, Blackrock’s $1.9bn ($1.98bn) Aggregate Link ESG ETF saw changes to its index to align with stricter ESG investment rules from France under the Socially Responsible Investment (SRI) label introduced at the end of 2023.
Meanwhile, in the US markets, BlackRock has 438 ETFs listed, with total assets under management of $3.04 trillion, and an average expense ratio of 0.3%. BlackRock ETF asset classes span fixed income, equity, asset allocation, currency and commodities. The firm’s largest ETF is the All-U.S Ishares Core S&P 500 ETF (IVV)which has assets under management of nearly $560 million.
This article was Originally Posted On our sister site, etfstream.com.
