BlackRock updates multi-factor ETF suite to serve as portfolio building blocks

NEW YORK–(BUSINESS WIRE)–Effective today, BlackRock has implemented changes to the iShares Multifactor Suite, bringing enhanced systematic multifactor investing capabilities to the foundation of portfolio construction. The iShares US Equity Factor ETF (LRGF) and the iShares International Equity Factor ETF (INTF) the updates are as follows:

Summary of improvements

LRGF

INTF

New fund name

iShares US Equity Factor ETF

iShares International Equity Factor ETF

New investment objective

Seeks to track the investment results of an index composed of large and mid cap US stocks that have favorable exposure to constrained target style factors.

Seeks to track the investment results of an index composed of large and mid cap stocks from global developed markets, excluding the US, which have favorable exposure to constrained target style factors.

New clue

Supplier: Qontigo

STOXX US Equity Factor Index

STOXX International Equity Factor Index

Expense ratio1

0.08%

0.15%

“Investors and advisors can benefit from implementing thoughtful factor exposure when constructing portfolios across asset classes and sectors,” said Lukas Smart, Managing Director, Head of US iShares Sustainable and Factors at BlackRock. “Our multi-factor mid- and large-cap equity ETFs impose a balanced and consistent positioning across five historically rewarded factors at a low cost. Incorporating factors can increase opportunities for incremental returns and provide a differentiation strategy for core holdings used for long-term goals such as retirement.2

Innovation factor

The factors go beyond standard market exposures, using characteristics such as value, quality, momentum, small size and low volatility to drive performance. LRGF and INTF combine traditional factor measures such as dividend yields, gross profitability and price momentum with newly identified analysis to allow more in-depth access to each of these five factors.

“Capital markets continue to evolve, enhancing our understanding of the underlying forces behind investment returns,” said Dr. Andrew Ang, Head of Factors, Sustainability and Solutions for BlackRock Systematic. “Combining traditional and previously untapped factor insights, iShares Multifactor ETFs have innovated how market participants can capture factors and helped them build diversified multifactor portfolios with efficiency, accessibility and transparency.”

BlackRock has helped develop the industry’s various systematic investment strategies over the past 35 years through quantitative research and risk management oversight. iShares’ factor ETF platform comprises 44 products with nearly $164 billion in assets under management across domestic, international and emerging markets, across both equities and fixed income.3 For more information, please visit https://www.ishares.com/us/strategies/smart-beta-investing.

About Black Rock

BlackRock’s goal is to help more and more people experience financial wellness. As an investor trustee and leading financial technology provider, we help millions of people build savings that will last them a lifetime by making investing easier and more affordable. For more information about BlackRock, please visit www.blackrock.com/company

About iShares

iShares opens opportunities in all markets to meet the changing needs of investors. With over twenty years of experience, a global lineup of over 900 exchange-traded funds (ETFs), and $3.15 trillion in assets under management as of March 31, 2022, iShares continues to drive the financial industry forward. iShares funds are powered by BlackRock’s expert portfolio and risk management.

Carefully review the investment objectives, risk factors and charges and expenses before investing. This and other information may be contained in the prospectuses of the Funds or, if available, the summary flyers which can be obtained by visiting www.iShares.com Where www.blackrock.com. Read the prospectus carefully before investing.

Investing involves risk, including possible loss of principal.

Buying and selling ETF shares may incur brokerage commissions.

There can be no assurance that performance will be enhanced or risk reduced for funds that seek to provide exposure to certain quantitative investment characteristics (“factors”). Exposure to such investment factors may adversely affect performance in certain market environments, possibly for long periods of time. In such circumstances, a fund may seek to maintain exposure to the targeted investment factors and not adjust to the various targeted factors, which could result in losses.

Prepared by BlackRock Investments, LLC, Member FINRA.

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by STOXX Ltd., and that company makes no representation as to the advisability of investing in the Funds. BlackRock is not affiliated with STOXX Ltd.

©2022 BlackRock, Inc. All rights reserved. iSHARES and BLACK ROCK are trademarks of BlackRock, Inc. or its subsidiaries in the United States and elsewhere.

All other trademarks are the property of their respective owners.

1 Expense ratio reductions effective March 31, 2022.

2 black rock,”Next Evolution of Factor Investing

3 BlackRock, as of May 25, 2022