The four new funds provide access to a range of markets and seek to offer reduced volatility compared to those based on standard market-cap weighted indices.
These ‘smart’ ETFs seek to address the rise in overall equity market volatility since the onset of the financial crisis.
iShares cited the example of the MSCI Europe Index, which saw moves up or down 2% more than three times per month on average between 2007 and 2011 – a heightened volatility the firm said has deterred many investors from accessing equity markets.
“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 holding cash simply does not do,” said Stephen Cohen, head of iShares investment strategies and insights EMEA.
Each of the four funds is optimised and physically backed and have a total expense ratio of between 20 and 40 basis points.
They are named the iShares MSCI Europe Minimum Volatility Fund, iShares MSCI Emerging Markets Minimum Volatility Fund, iShares MSCI World Minimum Volatility Fund and iShares S&P 500 Minimum Volatility Fund.
