Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

iShares targets minimum volatility with new ETF range

iShares targets minimum volatility with new ETF range

iShares, the exchange traded fund (ETF) arm of BlackRock, has launched a raft of ETFs designed to deliver returns with the lowest absolute volatility.

The new range, launched on the London Stock Exchange, comprises the iShares MSCI World Minimum Volatility, MSCI Emerging Markets Minimum Volatility, Europe Minimum Volatility and S&P 500 Minimum Volatility.

The physically-replicated funds, which use an optimisation process to enhance liquidity, track their respective benchmarks which are based on a minimum volatility strategy.

This selects securities from a parent index, based on estimates of the risk profile and expected volatility of each constituent, as well as the correlation between the constituents.

The aim of the strategy is to select the stocks with the lowest absolute volatility of returns, subject to certain risk diversification constraints, minimum and maximum weightings, sectors and country weights.

The ETFs, which have total expense ratios of 0.20% to 0.40%, have not yet gained reporting status in the UK, although they are in the process of seeking it.

The launch marks the ETF provider’s expansion into the ‘Smart Beta’ space in the UK, with a set of products providing enhanced equity exposure.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Boutique tapes: my business will never be sold

Boutique tapes: my business will never be sold

In the final part of our four part series we discuss consolidation and whether it's getting tougher for boutiques to survive.

Play Boutique tapes: are top managers better off at small firms?

Boutique tapes: are top managers better off at small firms?

In episode three of our series, boutique bosses discuss whether the best fund managers are more likely to thrive at smaller firms.

Play Boutique tapes: if you want a Ferrari, you have to pay for it

Boutique tapes: if you want a Ferrari, you have to pay for it

In the second part of our four-part series, boutique bosses are asked how they can justify the fees charged by active managers.

Read More
Your Business: Cover Star Club

Profile: how this boutique beat the big guns of wealth

Profile: how this boutique beat the big guns of wealth

This small west country offshoot of a local IFA scooped a 2018 Citywire award from beneath the noses of the national challengers

Wealth Manager on Twitter