BlackRock’s iShares pulled the trigger on two actively managed exchange traded fund strategies, and in collaboration with a pension fund, added three passive “factor” funds
According to a press release, the actively managed iShares Enhanced U.S. Large-Cap ETF (NYSEArca: IELG) and iShares Enhanced U.S. Small-Cap ETF (NYSEArca: IESM) started trading Thursday, April 18. The funds will follow market factors, such as quality, value and size, while utilizing BlackRock’s expertise in risk management. IELG has a 0.18% expense ratio and IESM has a 0.35% expense ratio. [iShares Files More Actively Managed ETFs]
“The iShares Enhanced ETFs seek to provide competitive risk-adjusted returns compared to the broad large-cap or small-cap market,” the press release stated.
IELG’s has 110 components, and the top holdings include Gamestop 2.2%, Pfizer 2.1%, Johnson & Johnson 2.1%, Merck 2.1% and Abbot Laboratories 2.1%.
IESM’s has 263 components, and the top holdings include World Acceptance Corp. 2.1%, Buffalo Wild Wings 2.1%, Arbitron 2.1%, Zoetis 2.1% and Symetra Financial 2.1%.
The fund sponsor also launched three passive, factor-based, “intelligent-beta” ETFs: iShares MSCI USA Momentum Factor ETF (NYSEArca: MTUM), iShares MSCI USA Size Factor ETF NYSEArca: SIZE) and iShares MSCI USA Value Factor ETF (NYSEArca: VLUE). The three ETFs each have a 0.15% expense ratio.