Morningstar, iShares Partner Up to Launch Style Investment ETFs

Investors will soon be able to access BlackRock iShares exchange traded funds that reflect the iconic Morningstar Style Box.

Morningstar Inc., a leading provider of independent investment research and a leader in style analysis and investing since the creation of the Morningstar Style Box in 1992, will launch a new index family, the Morningstar Broad Style Indexes, in January 2021, according to a Morningstar note.

The Morningstar Broad Style Indexes are designed to more accurately represent the size and style dimensions of the U.S. equity market. The underlying data and methodology of the Morningstar Broad Style Indexes will be consistent with the Morningstar Style Box, which will make the Morningstar Broad Style Indexes a natural complement for informing style-related investment decisions.

“Style investing is the bedrock of many investors’ portfolios. Inspired by more than 30 years of independent research and analysis, the new Morningstar Broad Style Indexes aim to empower investors through a more flexible and intuitive framework for building U.S. equity portfolios,” Ron Bundy, president, Morningstar Indexes, said in a note. “As we look to expand our set of style indexes in the new year, we are proud of our enhanced relationship with iShares.”

Morningstar and iShares will be partnering up to track the new index family. Nine funds in the iShares Morningstar U.S. Equity Style Box ETF suite will be backed by the new Morningstar Broad Style Indexes.

“iShares leads the ETF industry through our commitment to deliver a combination of innovation, quality, and value. Our continued relationship with Morningstar reinforces our value proposition and our willingness to use the scale of our platform to provide better solutions and outcomes for our clients,” Armando Senra, managing director and head of iShares Americas at BlackRock, said in a note. “At the heart of this collaboration is our mission to deliver simplicity, diversification, and flexibility, enabling investors to efficiently build portfolios tailored to their risk and return targets.”

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