BlackRock, Inc. (NYSE:BLK) iShares unit, the world’s largest ETF issuer, added to its lineup of factor-driven ETFs today with the debut of five new funds. Two of the new ETFs are managed using BlackRock, Inc. (NYSE:BLK) research rather than tracking an index while the other three are iShares MSCI Factor ETFs, which seek to track MSCI Risk Premia Indices.
The new iShares factor ETFs, both of which are actively managed are the iShares Enhanced U.S. Large-Cap (NYSEARCA:IELG) and the iShares Enhanced U.S. Small-Cap (NYSEARCA:IESM).
“The new funds utilize the pioneering research on factor investing and expertise in risk management of BlackRock, Inc. (NYSE:BLK) rather than tracking an index or individual stock picking. The iShares Enhanced ETFs seek to provide competitive risk-adjusted returns compared to the broad large-cap or small-cap market,” said iShares in a statement.
The iShares Enhanced U.S. Large-Cap ETF, which has an annual expense ratio of 0.18 percent, paltry by the standards of many actively managed ETFs, is home to 110 stocks. The fund’s top-10 holdings account for just 20.7 percent of the fund’s weight. IELG’s top holdings include GameStop Corp. (NYSE:GME), Pfizer Inc. (NYSE:PFE), Johnson & Johnson (NYSE:JNJ) and Amazon.com, Inc. (NASDAQ:AMZN).
The iShares Enhanced U.S. Small-Cap ETF is home to 263 stocks and charges an annual fee of 0.35 percent. That new ETF’s top-10 holdings represent just over 20 percent of the fund’s total weight. Top holdings include World Acceptance Corp. (NASDAQ:WRLD), Buffalo Wild Wings (NASDAQ:BWLD) and Arbitron Inc. (NYSE:ARB).
In addition to IELG and IESM, iShares also introduced three other factor-driven ETFs today.