Factor investing at BlackRock

Capitalizing on a global research team and our industry-leading Aladdin analysis, BlackRock offers a range of solutions designed to tap the potential of factors – and help investors improve diversification while targeting specific outcomes.

BlackRock offers two key ways to access factors today:

Factors: Twoways to access

Smart beta strategies

Low-cost and transparent smart beta strategies are the "gateway" to factor investing - designed to harvest broad, persistent drivers of returns by taking advantage of economic insights, diversification and efficient trading execution.

Smart beta strategies screen thousands of securities to capture single or multiple factors transparently and efficiently, but with a fundamentally different outcome than a primary benchmark return.

Enhanced factor strategies

Investors can access factors in more advanced ways with dynamic strategies that trade across multiple asset classes and employ leverage and shorting. Enhanced factor strategies may allow managers to make active factor decisions to try to generate excess returns. Investors use these strategies to seek absolute returns or to complement hedge funds and traditional active strategies.