iShares has launched a range of exchange-traded funds (ETFs) tracking alternative indices of European equities
The ‘factor’ ETFs have been designed to only track stocks with certain characteristics, either ‘value’, ‘size’ ‘momentum’ or ‘quality’.
For instance, the iShares MSCI Europe Value Factor Ucits ETF tracks stocks that are “undervalued relative to their sector” while the MSCI Europe Momentum Factor Ucits ETF invests in stocks that “have been experiencing an upward price trend”.
iShares said all four ETFs would track a specially constructed index that follows a “transparent methodology developed with MSCI”.
All four ETFs will have a total expense ratio of 0.25 per cent.
iShares, the ETF business of BlackRock, already has a similar range of ETFs tracking the same ‘factors’ on the MSCI World index.
