BlackRock Expands iShares Core for Buy-And-Hold Investors

New iShares Core Funds Offer Additional Flexibility.  Investors and Financial Advisors Increasingly Turning to ETFs for Long-Term Holdings….  


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BlackRock, Inc. expanded its iShares Core lineup with 10 equity and fixed income U.S. iShares, designed to help long-term investors keep more of what they earn. This is the latest effort in BlackRock’s commitment to making investing simpler, easier and more efficient for clients.
BlackRock launched the iShares Core in October 2012 as a branded suite of exchange-traded funds (ETFs).  The iShares Core was designed to appeal to investors looking for a simple, low cost way to invest long-term in broad exposures in equities and bonds.  Since launch, investors ranging from global institutions to U.S. retail advisors have embraced the Core and its value proposition adding more than $25 billion1 in assets to the suite including the iShares Core MSCI Emerging Markets fund (NYSEArca: IEMG), now one of the largest and most popular emerging market ETFs in the world with nearly $4.6 billion in assets. Building on this momentum, earlier this year we launched iShares Core lines in our Canadian and European businesses.
BlackRock is now expanding the U.S. iShares Core to include iShares Core Select – the next level of building blocks with additional options for long-term investors.  The new funds provide a simplified approach with broad, diversified exposures to:
–  U.S. growth, value, and dividend equities
– European and Pacific equities utilizing all-cap MSCI IMI benchmarks, from the leading global equities index provider  
– Three U.S. bond sectors, and a more diversified bond market exposure

Growth of the Core
Patrick Dunne, Head of Global Markets & Investments for iShares, said:  “Investors seek value for money in long-term investments especially in core broad market exposures. That’s where we are aiming to accelerate iShares growth by expanding the iShares Core.” “We are now taking buy-and-hold investing up a level with greater choice and flexibility.  Look for growth or value, seek to bump up your income stream, invest in Europe or Asia, or buy a bond sector – and do it easily and cost-effectively.”
 
A Secular Trend Toward ETFs for Long-Term Holdings
Around the world, investors large and small are turning to ETFs for long-term investments.
In a recent survey of current ETF personal investors in the U.S., 85% say that they are using ETFs for either only long-term holdings or a combination of long-term and short-term holdings, versus only 15% who say they are using them for short-term investments. Almost 60% of financial advisors are using ETFs in the core with roughly 60% expecting to increase their usage in the next 2 to 3 years.

Dunne continued:  “The iShares Core is designed to serve this secular shift to ETF investing by adding choice and flexibility.”
 
Making investing simpler, easier, and more efficient
“As this market continues to grow, investors are seeking straightforward, easy-to-understand content and resources,” Dunne added.  
BlackRock is committed to meeting this need and has led in helping investors make core investments, including: 

– Creating the iShares Core concept to help investors navigate an overwhelming set of investment options
– Simplifying into plain English product names and investment objectives  
– Offering the iShares Core Builder Tool, which creates customized global, long-term portfolios in five easy steps   

Expanding the Core
These 10 additions to the iShares Core include 4 new funds and 6 existing funds that have been re-priced and, in some cases, renamed.  The ten additions are:
 
U.S. Equities
–  iShares Core U.S. Growth ETF (NYSEArca: IUSG, formerly IWZ)*
–  iShares Core U.S. Value ETF (NYSEArca: IUSV, formerly IWW)*
–  iShares Core Dividend Growth  ETF (NYSEArca: DGRO)**
–  iShares Core High Dividend ETF (NYSEArca: HDV)*
 
International Equities
–  iShares Core MSCI Europe ETF (NYSEArca: IEUR)**
–  iShares Core MSCI Pacific ETF (NYSEArca: IPAC)**
 
U.S. Fixed Income
–  iShares Core Total USD Bond Market ETF (NYSEArca: IUSB)**
–  iShares Core U.S. Credit Bond ETF (NYSEArca: CRED, formerly CFT)*
–  iShares Core U.S. Treasury Bond ETF (NYSEArca: GOVT)*
–  iShares Core GNMA Bond ETF (NASDAQ: GNMA)*
 
*New pricing, new names and new tickers as appropriate, effective June 12, 2014.
**New funds expected to begin trading on or about June 12, 2014.

Dunne concluded:  
“If you’re looking to efficiently generate income amid low interest rates, consider the new iShares Core Dividend Growth ETF and the newly re-priced iShares Core High Dividend ETF. If you would like access to Europe while seeking to keep more of what you earn, iShares Core MSCI Europe ETF provides access to 99% of the pan-European stock market in one trade.”
 
Ten ETFs were originally introduced as the iShares Core in 2012 include:
U.S. Equities
–  iShares Core S&P Total U.S. Stock Market ETF (NYSEArca: ITOT)
–  iShares Core S&P 500 ETF (NYSEArca: IVV)
–  iShares Core S&P Mid-Cap ETF (NYSEArca: IJH)
–  iShares Core S&P Small-Cap ETF (NYSEArca: IJR) 

International Equities

–  iShares Core MSCI Total International Stock ETF (NYSEArca: IXUS)
–  iShares Core MSCI Emerging Markets ETF (NYSEArca: IEMG)
–  iShares Core MSCI EAFE ETF (NYSEArca: IEFA)

U.S. Fixed Income
–  iShares Core U.S. Aggregate Bond ETF  (NYSEArca: AGG)
–  iShares Core Long-Term USD Bond ETF (NYSEArca: ILTB)
–  iShares Core Short-Term USD Bond ETF (NYSEArca: ISTB)


1 Source: BlackRock ETP Landscape
Source: ETFWorld.com


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