Press Releases

BlackRock introduces U.S. Small Cap Minimum Volatility ETF

Sep 09, 2016

September 9, 2016, New York – BlackRock, Inc. (NYSE: BLK) has expanded its iShares Edge Minimum Volatility ETF lineup with the launch of iShares Edge MSCI Min Vol USA Small-Cap ETF (SMMV). 

 

With the MSCI USA Small Cap Minimum Volatility (USD) Index as its benchmark, the fund provides exposure to U.S. small-cap stocks that have exhibited less volatility relative to the wider small-cap U.S. equity market.  It is designed for investors seeking U.S. small-cap exposure, but with the potential for less risk.

 

Robert Nestor, Head of U.S. iShares Smart Beta at BlackRock, said:  “Minimum volatility ETFs are built for those primarily seeking risk reduction in all market environments, over the longer term. This fund applies the same time-tested approach to seek smaller-cap asset returns with lower volatility. It could appeal to those investors seeking a core U.S. small-cap position in their portfolios but also looking to manage risk.”

 

Against the backdrop of flat-to-negative equity returns and high volatility in global financial markets since late 2014, minimum volatility ETFs have emerged to become the most popular category of smart beta.[1] So far in 2016, iShares Minimum Volatility ETFs have seen inflows of over $15bn, with the largest of the funds - iShares Edge MSCI Min Vol USA ETF (USMV) - gathering $6.1bn.[2]

 

The launch of SMMV brings the number of iShares Minimum Volatility ETFs available to U.S. investors to twelve, covering domestic and international exposures:

 

 

BlackRock is a pioneer in factor-based investing and other smart beta investment strategies, with over 30 years of expertise in research and implementation. The firm manages more than $125bn in factor-based strategies globally and iShares, BlackRock’s ETF business, offers more than 80 smart beta ETFs globally with over $50bn in AUM.

 

About iShares

 

iShares® is a global leader in exchange-traded funds (ETFs), with more than a decade of expertise and commitment to individual and institutional investors of all sizes. With over 700 funds globally across multiple asset classes and strategies and more than $1 trillion in assets under management as of June 30, 2016, iShares helps clients around the world build the core of their portfolios, meet specific investment goals and implement market views. iShares funds are powered by the expert portfolio and risk management of BlackRock, trusted to manage more money than any other investment firm.1

 

1 Based on $4.890 trillion in AUM as of 6/30/16.

 

[1] BlackRock, Bloomberg, as of 08/16

[2] BlackRock, Bloomberg, 09/07/16

 

Media Contact:

 

Theresa McCartney
646-310-1653

 

Paul Young
212-810-8142

 

 

Carefully consider the Funds' investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds' prospectuses or, if available, the summary prospectuses which may be obtained by visiting www.iShares.com or www.blackrock.com. Read the prospectus carefully before investing. Investing involves risk, including possible loss of principal. The iShares Minimum Volatility ETFs may experience more than minimum volatility as there is no guarantee that the underlying index's strategy of seeking to lower volatility will be successful. Small-capitalization companies may be less stable and more susceptible to adverse developments, and their securities may be more volatile and less liquid than larger capitalization companies. International investing involves risks, including risks related to foreign currency, limited liquidity, less government regulation and the possibility of substantial volatility due to adverse political, economic or other developments. These risks often are heightened for investments in emerging/developing markets and in concentrations of single countries. The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”). The iShares Funds are not sponsored, endorsed, issued, sold or promoted by MSCI Inc., nor does this company make any representation regarding the advisability of investing in the Funds. BlackRock is not affiliated with MSCI Inc. ©2016 BlackRock. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock. All other marks are the property of their respective owners. iS-19133-0916

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