The “Factor” ETFs were developed at the request of the Arizona State Retirement System, which has seeded $100 million to each of the three funds, reports Cinthia Murphy for IndexUniverse.
“The expansion of iShares Factor ETFs demonstrates how iShares has raised the bar of ETF development by working alongside clients,” Patrick Dunne, Head of iShares Global Markets and Investments, said in the press release. “The iShares MSCI Factor ETFs compliment iShares’ suite of Minimum Volatility products and the iShares Enhanced ETFs can benefit from BlackRock research, portfolio implementation, and risk management expertise for our clients.”
MTUM will track large- and mid-cap stocks with higher-than-average price momentum, compared to traditional market-cap indices. SIZE consists of traditional U.S. large and mid-cap stocks, but it reweights the holdings based on a rules-based methodology that leans toward stocks with smaller average market-cap and lower-volatility. VLUE tracks large- and mid-cap stocks but gives greater weightings toward stocks with higher accounting values, such as book value, and three-year moving averages of sales, earnings, and cash earnings.
For more information on new product launches, visit our new ETFs category.
Max Chen contributed to this article.