Powering portfolio outcomes

Hands applying and smoothing cement on a surface, symbolising the foundations of resilient portfolio construction.
Hands applying and smoothing cement on a surface, symbolising the foundations of resilient portfolio construction.

Indexing plays an important role in helping institutions build resilient, efficient portfolios. For South African pension funds, insurers and long-term investors, iShares ETFs can support diversification, liquidity management, risk control and access to global markets through transparent, flexible exposures.

Our iShares platform offers investors access to a broad ETF toolkit supported by BlackRock’s index portfolio management experience, global trading capabilities and practical implementation support.

Explore how indexing can help address institutional portfolio challenges and how iShares can help bring those strategies to life.

Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested.
ETF Guide for Institutional Investors

An ETF 101 for institutional investors

A practical guide to understanding how ETFs work, where they can be used, and the considerations institutional investors should keep in mind when assessing them as part of a broader investment toolkit.

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How institutions use indexing

Index ETFs

Index ETFs are a type of investment that are designed to track the performance of a specific market index, such as the S&P 500, FTSE 100 or MSCI World Index, while trading on exchanges like a regular stock.

Index mutual funds

Index mutual funds are pooled investment vehicles managed by professional portfolio managers which are designed to replicate the performance of a specific market index. Mutual funds are bought and sold directly from the fund manager rather than via exchanges.

Active ETFs

Active ETFs are investment funds that are managed by professional portfolio managers who actively make decisions about which securities to buy, hold, or sell in order to outperform a specific benchmark or achieve a particular investment objective. They trade on stock exchanges, providing investors with the potential combined benefits of active management and exchange-traded funds.

Active mutual funds

Active mutual funds are a type of investment fund managed by professional portfolio managers who actively make decisions about which securities to buy, hold, or sell in order to outperform a specific benchmark index or achieve a particular investment objective. They are bought and sold directly with the fund manager.

Benefits of ETFs

Discover the key benefits of ETFs and why they can be an effective investment vehicle.

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Diversification

ETFs offer broad, efficient market exposure and diversification in a single trade, aiming to help investors manage risk and pursue long-term goals.
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Transparency

iShares ETFs disclose their portfolio composition daily, so iShares ETF shareholders know exactly what they own.
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Access

ETFs provide access to diverse markets, asset classes and commodities, making it easier and more cost-effective for investors to reach hard-to-access markets.
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Flexible

Unlike other types of investments, ETFs can be traded on stock exchanges, allowing investors more control.

Diversification and asset allocation may not fully protect you from market risk.

Risk considerations

Investing involves risk, and the value of investments can go down as well as up. Investors should consider a range of risk factors when evaluating opportunities:

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Tax

Tax treatment depends on individual circumstances and may change over time. Returns may be affected by current or future legislation, and different investment structures can carry tax implications.
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Currency

Investments in assets denominated in foreign currencies are subject to exchange rate fluctuations.
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Market risks

Market conditions, including economic developments, interest rate changes, geopolitical events, and investor sentiment, can affect asset prices.

Managing risk

While risk cannot be eliminated, it can be managed through disciplined portfolio construction and investment strategies. Diversification across asset classes, sectors, and geographies can help reduce exposure to any single source of risk.

Additional approaches - such as active management, hedging techniques, and maintaining appropriate liquidity - can further support resilience. A well-structured portfolio aligned with investment objectives and risk tolerance can be key to navigating changing market conditions.

Diversification and asset allocation may not fully protect you from market risk.
Portrait photograph of Dharma Laloobhai.

Meet the expert

Index investing through a global lens

With a career shaped across South Africa, the UK and global investment teams, Dharma Laloobhai brings a practical perspective to index investing.
In this Q&A, she reflects on the evolution of index management and why understanding each exposure matters in building long-term portfolios.

Read more