• Four minimum-volatility strategy ETFs enable lower-risk equity investing
• Three new index funds provide exposure to commodities companies
• Gain access to high yield and emerging markets bonds via three new fixed income ETFs…..…
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iShares, the exchange traded funds (‘ETF’) platform of BlackRock, Inc., (NYSE: BLK), is to list ten new ETFs on SIX Swiss Exchange AG.
The iShares MSCI Europe Minimum Volatility ETF, the iShares MSCI World Minimum Volatility ETF, the iShares MSCI Emerging Markets Minimum Volatility ETF and the iShares S&P 500 Minimum Volatility ETF will broaden the range of products to include strategies seeking to reduce volatility.
The new fixed income ETFs, iShares Barclays Emerging Markets Asia Local Government Capped Bond, iShares Morningstar $ Emerging Markets Corporate Bond and iShares Global High Yield Bond Fund will provide exposure to more volatile investments in the emerging markets and high yield asset classes.
The expansion of the product portfolio to include the iShares S&P Commodity Producers Agribusiness, the iShares S&P Commodity Producers Oil and Gas and the iShares S&P Commodity Producers Gold will additionally enable investors to make targeted investments in commodities companies.
Reducing the risk of stock market investments
The three minimum-volatility products provide investors with reduced-risk exposure to a variety of equity markets. The optimised underlying indices of these funds have lower volatility and a better risk-return profile than their respective parent indices, which are weighted by market capitalisation. “The minimum volatility indices are constructed by integrating those stocks from the parent indices that exhibit the lowest volatility and a relatively low correlation to other assets within the portfolio. At the same time, the typical constraints of the parent indices such as country and sector weightings are retained,” says Christian Gast, Head of iShares Switzerland. “The new ETFs allow investors to capture the opportunities of equity-market investments while seeking to mitigate risk.”
Further ETFs on Emerging Market Bonds and High Yield Bonds
The four new fixed income ETFs enlarge the efficient and transparent suite of products in the emerging markets and high yield asset classes. While the iShares Morningstar $ Emerging Markets Corporate Bond facilitates investment in US-dollar denominated bonds of companies from the emerging markets, the iShares Barclays Emerging Markets Asia Local Government Capped Bond provides the opportunity to acquire a targeted exposure in sovereign bonds denominated in the local Asian currency. The iShares Global High Yield Bond Fund invests in corporate bonds of issuers with an increased risk of default. The index contains bonds of 1,138 issuers and the weight of each issuer is capped at 3%, thus diversifying the default risk.
Investing in physically backed ETFs and commodities firms
The new Commodity products broaden the previously limited opportunities to participate in the performance of the commodity markets via physically backed ETFs. The three index funds pursue global investment opportunities, broadly diversified, in shares of agricultural businesses, in companies in the oil and gas sector and in firms that are involved in the exploration and extraction of gold.
Christian Gast comments: “The new funds allow us to offer investors in Switzerland an even wider range of products. This expansion of the investment universe reflects the great innovative strength of the ETF industry and of iShares. We are proud to be able to provide investors with transparent and cost-effective ETFs that facilitate flexible trading in all asset classes across the entire spectrum.”
Source: ETFWorld.co.uk
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