BlackRock has switched the indices of three multifactor ETFs as it aims to achieve better global consistency within its factor investing range.
The $633m iShares STOXX World Equity Multifactor UCITS ETF (IS07), the $245m iShares STOXX Europe Equity Multifactor UCITS ETF (IFSD) and the $70m iShares STOXX US Equity Multifactor UCITS ETF (UFSD) will go from tracking MSCI indices to their respective STOXX indices.
The ETF names will also change to align with the new indices.
Old ETF name | New ETF name | Old index | New index |
|---|---|---|---|
iShares Edge MSCI World Multifactor UCITS ETF | MSCI World Diversified Multiple-Factor index | STOXX Developed World Equity Factor Screened index | |
iShares Edge MSCI Europe Multifactor UCITS ETF | MSCI Europe Diversified Multiple-Factor index | STOXX Developed Europe Equity Factor Screened index | |
STOXX Developed Europe Equity Factor Screened index | MSCI USA Diversified Multiple-Factor index | STOXX US Equity Factor Screened index |
The new indices will include a low volatility factor and a different weighting methodology that will move from being neutral equal weight to instead using an asset allocation factor framework that will define the weighting of each factor.
Commenting on the changes, Axel Lomholt, general manager at STOXX said, “The STOXX Equity Factor Screened indices offer investors a unique methodology to target long-term potential outperformance and diversified exposure while controlling for systematic risk and integrating sustainability principles.”
Elsewhere, BlackRock’s $1.9bn euro aggregate bond ESG ETF saw changes to its index to align with France's stricter ESG investment rules under the Socially Responsible Investment (ISR) label introduced in late 2023.
