iShares, the world’s largest manager of ETFs, has added five factor ETFs to its lineup—products that are designed to help manage equity exposures and risk.
Factor ETFs focus in on the factors—such as quality, value, size and momentum—that influence an asset’s risk and return behavior, according to iShares.
The iShares Enhanced ETFs were developed for advisors who want access to multiple factors—quality, value and size—packaged in a single ETF. The new funds seek to provide competitive risk-adjusted returns compared to the broad large-cap or small-cap market.
The new iShares Enhanced ETFs are iShares Enhanced US Large Cap ETF (IELG) and iShares Enhanced US Small-Cap ETF (IESM).
The iShares MSCI Factor ETFs were designed for institutional investors who want exposure to a specific individual factor so they can overweight or hedge a single factor.
The new iShares MSCI Factor ETFs are iShares MSCI USA Momentum Factor ETF (MTUM), iShares MSCI USA Size Factor ETF (SIZE) and iShares MSCI USA Value Factor ETF (VLUE).