“Each iShares Factor ETF provides investors with index-based access to a specific factor,” BlackRock said in a press release. “Every asset has a unique set of factor exposures — such as quality, value, size and momentum — that influence the asset’s return.”
The Arizona State Retirement System seeded the four iShares factor ETFs. [iShares Launches Active, Factor ETFs]
“Investors may desire exposure to specific individual factors so they can overweight or hedge a single factor that has historically explained a significant part of companies’ return and risk over the long-term,” BlackRock said.
“iShares launched these products based on client demand for index-based exposure to factors that can help them adjust the factor-risk exposure within their equity portfolio,” said Patrick Dunne, head of iShares Global Markets and Investments.