The iShares MSCI International Developed Quality Factor ETF tracks the MSCI World ex USA Sector Neutral Quality Index and also features a heavy developed markets tilt. In the case of IQLT, that new fund devotes more than 40% of its combined weight to British and Swiss stocks.
No stock accounts for more than 5.16% of IQLT’s weight and top 10 holdings include Roche, Nestle (OTC: NSRGY) and Royal Dutch Shell (NYSE: RDS-A). IQLT also charges 0.3% per year.
“Client interest in smart beta is growing because institutional investors seek transparent ways to manage risk and capture return potential. The iShares Equity Smart Beta suite provides investors a diverse set of exposures built on sound academic and empirical evidence. These new funds help us provide comprehensive smart beta exposure,” said Mark Carver, head of iShares Equity Smart Beta, in the statement.
iShares’ momentum, quality, size and value factor ETFs have over $2 billion in combined assets under management. That group includes the $514.7 million iShares MSCI USA Momentum Factor ETF (NYSEArca: MTUM) and the $640.2 million iShares MSCI USA Value Weighted Index Fund (NYSEArca: VLUE). [Caution With Bespoke ETFs]
ETF Trends editorial team contributed to this post.