Factor etfs

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

Building resilience in the core with quality and min vol

Mar 28, 2023 | Robert Hum, CAIA

2023 volatility calls for portfolio protection. Learn how quality and minimum volatility exposures can potentially add resilience to portfolios during this period of market volatility.

Trends in factor investing in the 20th and 21st centuries

Feb 27, 2023 | Andrew Ang, PhD

Factor investing has evolved significantly over the 20th and 20th centuries. In this Angle, Andrew Ang investigates some of the key long and short-term trends.

The Next Factor Revolution: Fixed Income Factor ETFs

Oct 26, 2022 | Andrew Ang, PhD

Fixed Income Factor ETFs can enable investors to target well-established sources of return in an in a low-cost, transparent ETF.

Factors and That ‘70s Show

Sep 30, 2022 | Andrew Ang, PhD

There’s talk of recession. Inflation remains high. If a stagflation—high inflation and low growth—is on the way, which factors do you want to have exposure to?

Keeping clients invested with minimum volatility strategies

Sep 7, 2022 | Lukas Smart

Given today’s volatile market environment, minimum volatility strategies can be a great way to help clients stay invested by helping them manage risk.

Multifactor – the Moneyball of Investing

Aug 18, 2022 | Robert Hum, CAIA

Multifactor ETFs combine differentiated sources of return into one solution that can potentially reduce the cyclicality of each factor and seek to provide more consistent results.

A Mid-Year Factor Focus

Aug 9, 2022 | Andrew Ang, PhD

With higher inflation, rising interest rates, and worsening economic conditions, investors can use iShares Minimum Volatility and Value Factor ETFs to help capture potential upside and mitigate downside risk while maintaining their allocation to equities.

Staying invested with minimum volatility ETFs

Jul 14, 2022 | Robert Hum, CAIA

Volatility is here — Min Vol ETFs can help investors stay invested.

Staying in the zone with factor ETFs

Jul 14, 2022 | Robert Hum, CAIA

Inflation, rising rates and geopolitics are here — Factor ETFs can help.

The Next Evolution of Multifactor Investing

May 25, 2022 | Andrew Ang, PhD

With innovative factor research and changing client demands, using a multifactor ETF at the core of a portfolio can help provide investors access to 5 distinct historical drivers of returns.

What’s causing the selloff — and what to do about it

May 17, 2022 | Gargi Pal Chaudhuri

The recent sharp selloffs in the marketplace have shaken investors, see how a diversified investment approach can help your client's portfolios in this market environment.

Leveraging value as an equity hedge for inflation

Apr 14, 2022 | Robert Hum, CAIA

As you think about being more selective within your equities to position your portfolio for higher rates and inflation – consider value.

Factoring in Sustainability: A Worthy Pair

Mar 16, 2022 | Andrew Ang, PhD

We believe, pairing the minimum volatility factor and ESG can potentially deliver lower risk, better ESG scores, and lower carbon emissions.

SHOW MORE

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.

Net Asset Value
USD 92.61
YTD Nav Return
1.20%
Performance data represents past performance and does not guarantee future results. Investment return and principal value will fluctuate with market conditions and may be lower or higher when you sell your shares. Current performance may differ from the performance shown. For most recent month-end performance and standardized performance, click on the fund names above.
Net Asset Value
USD 124.10
YTD Nav Return
7.48%
Performance data represents past performance and does not guarantee future results. Investment return and principal value will fluctuate with market conditions and may be lower or higher when you sell your shares. Current performance may differ from the performance shown. For most recent month-end performance and standardized performance, click on the fund names above.
Net Asset Value
USD 117.84
YTD Nav Return
2.25%
Performance data represents past performance and does not guarantee future results. Investment return and principal value will fluctuate with market conditions and may be lower or higher when you sell your shares. Current performance may differ from the performance shown. For most recent month-end performance and standardized performance, click on the fund names above.
Net Asset Value
USD 139.02
YTD Nav Return
-4.95%
Performance data represents past performance and does not guarantee future results. Investment return and principal value will fluctuate with market conditions and may be lower or higher when you sell your shares. Current performance may differ from the performance shown. For most recent month-end performance and standardized performance, click on the fund names above.
Performance data represents past performance and does not guarantee future results. Investment return and principal value will fluctuate with market conditions and may be lower or higher when you sell your shares. Current performance may differ from the performance shown. For most recent month-end performance and standardized performance, click on the fund names above.

CUSTOMIZE YOUR CORE WITH iSHARES

Customize your core with iShares ETFs

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.