BlackRock Inc. has switched the indexes of three multifactor ETFs as it aims to achieve better global consistency within its factor investing range.
The $633 million iShares STOXX World Equity Multifactor UCITS ETF (IS07), the $245 million iShares STOXX Europe Equity Multifactor UCITS ETF (IFSD), and the $70 million iShares STOXX US Equity Multifactor UCITS ETF (UFSD) will go from tracking MSCI indexes to their respective STOXX indexes.
The ETF names will also change to align with the new indexes.
The new indexes will include a low volatility factor and a different weighting methodology that will move from being neutral equal weight to instead using an asset allocation factor framework that will define the weighting of each factor.
Commenting on the changes, Axel Lomholt, general manager at STOXX said, “The STOXX Equity Factor Screened [indexes] offer investors a unique methodology to target long-term potential outperformance and diversified exposure while controlling for systematic risk and integrating sustainability principles.”
Elsewhere, BlackRock’s $1.9 billion euro ($1.98 billion) aggregate bond ESG ETF saw changes to its index to align with France’s stricter ESG investment rules under the Socially Responsible Investment (ISR) label introduced in late 2023.
In the U.S. markets, meanwhile, BlackRock has 438 ETFs traded, 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 U.S.-listed ETF of all is the iShares Core S&P 500 ETF (IVV), which has assets under management of nearly $560 billion.
This article was originally published on our sister site, etfstream.com.
