“In today’s market environment, there is increased interest in managing risk and finding a solution via ETFs. Investors are seeking ‘smart beta’ solutions,” Darek Wojnar, head of iShares product development at BlackRock, said in a press release. “The new iShares Minimum Volatility Funds can help investors to reduce overall risk in a portfolio while retaining equity exposures. These funds can provide a complement to the core passive portfolio, helping to optimize risk-adjusted returns over the long-term.”
The tracking indices “aim to reflect the performance characteristics of a minimum-variance, focused on absolute return and volatility with the lowest absolute risk,” according to MSCI.
Tisha Guerrero contributed to this article.