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FACTOR ETFs
Set your sights on time-tested strategies
Factor ETFs employ the same persistent drivers of return as active managers, at a low-cost.
Video 02:51
FACTOR INVESTING 101
iShares Factor ETFs access the same drivers of return that active managers have used for decades, but at a fraction of the cost.
Remember how hard it used to be to book a vacation? We used to spend hours on the phone with a travel agent, then wait days, even weeks for them to work their magic. And that magic came with a high fee because only travel agents had access to the important information needed to book our vacation.
But the information that was once only available to travel agents is now available to anyone within seconds. Travel sites have made finding the perfect hotel cheaper, faster and more efficient.
The same is true for investing. For years, active managers used teams of analysts to find stocks that seemed more likely to outperform. And as an investor, you had to pay a lot in fees to access that thinking.
Many of the traits that active managers have looked for (like buying underpriced, quality stocks) are called Factors. And just like you no longer need to call a travel agent to book an affordable, quality vacation, you no longer need to pay large fees for active managers to choose the right stocks based on Factors.
Now, you can use iShares Factor ETFs to invest in stocks that exhibit the Factors that have historically driven portfolio returns.
Just as travel sites use simple filters to quickly drill down to the perfect hotel, factor investing provides access to security screens that active managers have used for generations. Thanks to data and technology, the investment ideas that once took a team of analysts months to research now takes a fraction of the time, at a fraction of the cost.
There are five Factors that have historically proven to be drivers of return, and iShares offers ETFs that seek to capture all five:
Theres Quality, which identifies companies with strong and healthy balance sheets. Minimum Volatility, or stocks that are less volatile than the broad market. Size, which targets smaller, more nimble companies. Momentum, which seeks stocks on an upswing. And value, which targets stocks that are inexpensive relative to their fundamentals.
Factor ETFs deliver the power of time-tested investment screens in a low-cost and tax-efficient investment vehicle, revolutionizing access for everyday investors.
Who said finding the right securities for your portfolio was difficult? We say, its as easy as booking a hotel.
FACTOR INVESTING INSIGHTS
EXPLORE FACTORS
Factors - well known, well documented, well understood investment characteristics – are present in all portfolios. Explore the 5 factors that have historically driven portfolio returns.
CUSTOMIZE YOUR CORE WITH iSHARES
Screenshot for illustrative purposes only
See how you can tailor the core of your clients’ portfolios to help deliver competitive performance and tax efficiency at a low cost.
No proprietary technology or asset allocation model is a guarantee against loss of principal. There can be no assurance that an investment strategy based on the tool will be successful.
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1 If more than one fund is selected, the allocation is weighted equally between selected funds.
2 Source: Morningstar and BlackRock. Respective categories and allocations for funds selected within the tool are used to calculate weighted average for combined Morningstar categories.
3 Past distributions are not indicative of future distributions.
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 visiting the iShares ETF and BlackRock Mutual Fund prospectus pages. Read the prospectus carefully before investing.
Investing involves risk, including possible loss of principal.
There can be no assurance that performance will be enhanced or risk will be reduced for funds that seek to provide exposure to certain quantitative investment characteristics ("factors"). Exposure to such investment factors may detract from performance in some market environments, perhaps for extended periods. In such circumstances, a fund may seek to maintain exposure to the targeted investment factors and not adjust to target different factors, which could result in losses.
The iShares Minimum Volatility Funds 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.
Asset allocation and diversification may not protect against market risk, loss of principal or volatility of returns.
The strategies discussed are strictly for illustrative and educational purposes and are not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. There is no guarantee that any strategies discussed will be effective.
The information presented does not take into consideration commissions, tax implications, or other transactions costs, which may significantly affect the economic consequences of a given strategy or investment decision.
This material represents an assessment of the market environment as of the date indicated; is subject to change; and is not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the funds or any issuer or security in particular.
This material contains general information only and does not take into account an individual's financial circumstances. This information should not be relied upon as a primary basis for an investment decision. Rather, an assessment should be made as to whether the information is appropriate in individual circumstances and consideration should be given to talking to a financial advisor before making an investment decision.
The Funds are distributed by BlackRock Investments, LLC (together with its affiliates, "BlackRock").
The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Barclays, Bloomberg Finance L.P., BlackRock Index Services, LLC, Cohen & Steers Capital Management, Inc., European Public Real Estate Association (“EPRA® ”), FTSE International Limited (“FTSE”), ICE Data Services, LLC, India Index Services & Products Limited, JPMorgan Chase & Co., Japan Exchange Group, MSCI Inc., Markit Indices Limited, Morningstar, Inc., The NASDAQ OMX Group, Inc., National Association of Real Estate Investment Trusts (“NAREIT”), New York Stock Exchange, Inc., Russell or S&P Dow Jones Indices LLC. None of these companies make any representation regarding the advisability of investing in the Funds. With the exception of BlackRock Index Services, LLC, who is an affiliate, BlackRock Investments, LLC is not affiliated with the companies listed above.
Neither FTSE nor NAREIT makes any warranty regarding the FTSE NAREIT Equity REITS Index, FTSE NAREIT All Residential Capped Index or FTSE NAREIT All Mortgage Capped Index; all rights vest in NAREIT. Neither FTSE nor NAREIT makes any warranty regarding the FTSE EPRA/NAREIT Developed Real Estate ex-U.S. Index or FTSE EPRA/NAREIT Global REIT Index; all rights vest in FTSE, NAREIT and EPRA.“FTSE®” is a trademark of London Stock Exchange Group companies and is used by FTSE under license.
©2023 BlackRock, Inc. or its affiiliates. All Rights Reserved. BLACKROCK, BLACKROCK SOLUTIONS, BUILD ON BLACKROCK, ALADDIN, iSHARES, iBONDS, FACTORSELECT, iTHINKING, iSHARES CONNECT, FUND FRENZY, LIFEPATH, SO WHAT DO I DO WITH MY MONEY, INVESTING FOR A NEW WORLD, BUILT FOR THESE TIMES, the iShares Core Graphic, CoRI and the CoRI logo are trademarks of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
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