NEW YORK--(BUSINESS WIRE)--
BlackRock, Inc. (NYSE:BLK) today announced that its iShares®
Exchange Traded Funds (ETFs) business, the world's largest manager of
ETFs, launched three new minimum volatility ETFs designed to help
investors manage risk in their portfolios. The new ETFs build on the
success of the original iShares Minimum Volatility ETFs, which launched
in 2011 and have nearly $7 billion in Assets under Management (AUM), and
aim to provide lower risk alternatives to international exposures.
The new ETFs are:
- iShares MSCI Europe Minimum Volatility ETF (NYSEArca:EUMV)
- iShares MSCI Japan Minimum Volatility ETF(NYSEArca:JPMV)
- iShares MSCI Asia ex Japan Minimum Volatility ETF (NYSEArca:AXJV)
Patrick Dunne, Head of iShares Global Markets and Investments at
BlackRock, said:
“Volatility has generally increased over the past decade and investors
are wondering how to adjust their portfolios to help minimize this risk,
while still meeting their long-term goals. The traditional ‘safe havens’
of cash and government bonds have not provided much of an alternative,
with returns at or near historical lows. BlackRock with its long
heritage of product innovation created iShares Minimum Volatility ETFs
to provide investors the opportunity to remain in the market while
seeking to minimize the market’s peaks and valleys. These ETFs can
provide a complement or alternative to the core indexed portfolio,
potentially improving risk-adjusted returns over the long term.”
The iShares Minimum Volatility ETFs are designed to track the Minimum
Volatility Indices by MSCI, one of the world’s largest and most
well-established index providers and the gold standard for international
investing. The Indices seek to capture the movements of broad equity
markets with a reduced amount of risk. MSCI constructs an optimal mix of
less volatile stocks by examining the respective parent market
capitalization-weighted MSCI Indices, evaluating the volatility of each
individual stock and the correlations between stocks, all while applying
a number of constraints to ensure the portfolio is sufficiently
diversified and maintains the main characteristics of the broad market
index. The application of constraints is important in making sure the
index isn’t too heavily concentrated in one industry or country, which
could create additional unintended risk.
About BlackRock
BlackRock is a leader in investment management, risk management and
advisory services for institutional and retail clients worldwide. At
March 31, 2014, BlackRock’s AUM was $4.401 trillion. BlackRock helps
clients meet their goals and overcome challenges with a range of
products that include separate accounts, mutual funds, iShares®
(exchange-traded funds), and other pooled investment vehicles. BlackRock
also offers risk management, advisory and enterprise investment system
services to a broad base of institutional investors through BlackRock
Solutions®. Headquartered in New York City, as of March
31, 2014, the firm had approximately 11,500 employees in more than 30
countries and a major presence in key global markets, including North
and South America, Europe, Asia, Australia and the Middle East and
Africa. For additional information, please visit the Company’s website
at www.blackrock.com.
About iShares
iShares is a global product leader in exchange traded funds with over
600 funds globally across equities, fixed income and commodities, which
trade on 20 exchanges worldwide. The iShares Funds are bought and sold
like common stocks on securities exchanges. The iShares Funds are
attractive to many individual and institutional investors and financial
intermediaries because of their relative low cost and trading
flexibility. Investors can purchase and sell shares through any
brokerage firm, financial advisor, or online broker, and hold the funds
in any type of brokerage account. The iShares customer base consists of
the institutional segment of pension plans and fund managers, as well as
the retail segment of financial advisors and high net worth individuals.
Carefully consider the iShares Funds’ investment objectives, risk
factors, and charges and expenses before investing. This and other
information can be found in the Funds’ prospectuses and, if available,
summary prospectuses, which may be obtained by calling 1-800-iShares
(1-800-474-2737) or by visiting www.iShares.com.
Read the prospectus carefully before investing. Investing involves risk,
including possible loss of principal.
Transactions in shares of the iShares Funds will result in brokerage
commissions and will generate tax consequences. iShares Funds are
obliged to distribute portfolio gains to shareholders. Shares of the
iShares Funds may be sold throughout the day on the exchange through any
brokerage account. However, shares may only be redeemed directly from a
Fund by Authorized Participants, in very large creation/redemption units.
International investing involves risks, including risks related to
foreign currency, limited liquidity, less government regulation and the
possibility of substantial volatility due to adverse political, economic
or other developments. These risks often are heightened for investments
in emerging/ developing markets or in concentrations of single
countries. The iShares Minimum Volatility ETFs may experience more than
minimum volatility as there is no guarantee that the underlying index's
strategy of seeking to lower volatility will be successful.
The iShares Funds are distributed by BlackRock Investments, LLC
(together with its affiliates, “BlackRock”).
The iShares Funds are not sponsored, endorsed, issued, sold or promoted
by MSCI Inc., nor does this company make any representation regarding
the advisability of investing in the Funds. BlackRock is not affiliated
with the company listed above.
© 2014 BlackRock. All rights reserved. iSHARES and BLACKROCK
are registered trademarks of BlackRock. All other marks are the property
of their respective owners. iS-12626-0614
BlackRock, Inc.
Christine Hudacko, 415-670-2687
Christine.Hudacko@blackrock.com
Melissa
Garville, 212-810-5528
Melissa.Garville@blackrock.com
Source: BlackRock, Inc.