iShares launch four Factor ETFs

iShares launch four Factor ETFs on LSE, all priced at a net expence of 0.3%

The iShares MSCI World Value Factor UCITS ETF is an exchange traded fund (ETF) that aims to achieve a return on your investment, through a combination of capital growth and income on the Fund's assets, which reflects the return of the MSCI World Enhanced Value Index, the Fund's benchmark index. The Fund invests in equity securities (e.g. shares) that, so far as possible and practicable, make up the benchmark index. The benchmark index aims to reflect the performance characteristics of a subset of securities within the MSCI World Index ("Parent Index") which are selected as having value factor. The constituents of the Benchmark Index are selected from the Parent Index based on three main equally weighted indicators of whether equity securities of a company provide good value: comparing the price of an equity to estimated future earnings (based on a consensus of analysts’ views published by an industry recognised third party source); the price of an equity relative to the book value (i.e. the value of shareholder equity on the balance sheet) of the company; and enterprise value (a measure of a company’s value, incorporating debt and equity) of a company relative to its operating cash flow (i.e. a measure of the amount of cash generated by a company’s normal business operations), save that enterprise value is not used as an indicator of good value for financial sector companies due to their capital structure.

The iShares MSCI World Size Factor UCITS ETF is an exchange traded fund (ETF) that aims to reflect the performance of mid capitalisation securities within the MSCI World Index (“Parent Index”), with each security being equally weighted within the Benchmark Index. The Fund invests in equity securities (e.g. shares) that, so far as possible and practicable, make up the benchmark index. The Benchmark Index includes the mid capitalisation constituents of the Parent Index but, at each rebalance date, all index constituents are weighted equally, effectively removing the influence of the size of each constituent’s market capitalisation. This means that, at each index rebalance, the Benchmark Index will have a larger weighting in the smaller mid capitalisation securities compared to its Parent Index.

The iShares MSCI World Momentum Factor UCITS ETF is an exchange traded fund (ETF) that aims to achieve a return on your investment, through a combination of capital growth and income on the Fund's assets, which reflects the return of the MSCI World Momentum Index, the Fund's benchmark index. The Fund invests in equity securities (e.g. shares) that, so far as possible and practicable, make up the benchmark index. The benchmark index aims to reflect the performance characteristics of a subset of securities within the MSCI World Index ("Parent Index") which are selected for their high price momentum. The constituents of the Benchmark Index are selected using an equity momentum strategy which identifies securities that have experienced price increases over the past 6 and past 12 months with the assumption that increases will continue in the future.

The iShares MSCI World Quality Factor UCITS ETF is an exchange traded fund (ETF) that aims to achieve a return on your investment, through a combination of capital growth and income on the Fund's assets, which reflects the return of the MSCI World Sector Neutral Quality Index, the Fund's benchmark index. The Fund invests in equity securities (e.g. shares) that, so far as possible and practicable, make up the benchmark index. The benchmark index aims to reflect the performance characteristics of a subset of securities within the MSCI World Index ("Parent Index") which are selected for their high quality factor. The constituents of the Benchmark Index are selected from the Parent Index based on three main equally weighted indicators of whether a company is demonstrating high quality characteristics: high percentage of company earnings allocated to shareholders; low levels of debt; and low year on year earnings variability.

 
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