Bringing you live news and features since 2006 

iShares launches first suite of minimum volatility ETFs in Europe

RELATED TOPICS​

iShares, the exchange-traded funds platform of BlackRock, has launched four ETFs based on minimum volatility indices on the London Stock Exchange.

The new funds provide access to a range of markets and seek to offer reduced volatility compared to standard market-capitalisation weighted indices.
 
Since the onset of the financial crisis, overall equity market volatility has risen both in terms of the magnitude and the frequency of volatile episodes. Between 2007 and 2011, the MSCI Europe Index saw +/- two per cent daily moves more than three times a month on average, compared to the previous three years where this only happened approximately five times a year. This heightened volatility over the recent years has deterred many investors from accessing equity markets.
 
The four new ETFs are the iShares MSCI Europe Minimum Volatility fund, the iShares MSCI World Minimum Volatility fund, the iShares MSCI Emerging Markets Minimum Volatility fund and the iShares S&P 500 Minimum Volatility fund. 

Each of the four funds is optimised and physically backed and they are the first ETFs, domiciled in Europe, to be created on their respective indices.
 
“These new funds are suitable for investors looking for a smoother ride in today’s investment world. This new suite aims to offer an attractive investment over the longer term with the potential to provide a better trade-off between risk and return, something that simply holding cash does not do,” says Stephen Cohen (pictured), head of iShares investment strategies and insights EMEA.
 
The funds have a total expense ratio of between 20 and 40 basis points.

Latest News

Morningstar has published a review of the European ETF market for the first quarter 2024, which finds that it gathered..
ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..
Calastone has published an ETF white paper which examines several of the processes that take place across the lifecycle of..
Adapting product lines to fit into changing methodologies and meet shifting demand is essential to remaining relevant in the industry..

Related Articles

Kristen Mierzwa, FTSE Russell
Index Investments Group (IIG), a division within index provider FTSE Russell, has extended its range of indices through two new...
ETFs
US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms, such as Charles...
Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by