Factor investing is a different way of approaching investments. It’s about being more deliberate around what investors own and more efficient in pursuing the outcomes they are seeking.
75%
of institutions invest in factor-based strategies through ETFs or are considering doing so.1
Why Factor ETFs?
Factor ETFs harness the efficiencies of the ETF structure, revolutionizing how institutions access the historically rewarded styles of value, momentum, low size, quality, and minimum volatility.
Factor Outlook
Sara Shores, Head of Investment Strategy for the Factor-Based Strategy Group, previews the most recent Factor Outlook views based on BlackRock’s proprietary factor tilting model.
Learn more Learn moreFactor Commentary
Access topical factor investing commentary from BlackRock’s Dr. Andrew Ang.
What is Factor Investing?
Dr. Andrew Ang, BlackRock's Head of Factor-Based Strategy Group, explains how factors work to better capture their potential for excess return and reduced risk, just as leading investors have done for decades.
Active tools, index pricing
iShares Factor ETFs offer cost-efficient exposure to sources of higher expected returns. Many iShares factor ETFs are benchmarked to indexes created by MSCI.
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Compare different ways to access value with ETFs.
Compare different ways to access value with ETFs.
1 Source: 9th Annual Greenwich Associates Institutional ETF Study, 2019. Based on 181 U.S. respondents respectively. Usage figures come from a survey of asset managers, insurers, consultants, and institutional funds.
Carefully consider the Funds' investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds' prospectuses or, if available, the summary prospectuses, which may be obtained by visiting the iShares Fund and BlackRock Fund prospectus pages. Read the prospectus carefully before investing.
Investing involves risk, including possible loss of principal.
There can be no assurance that performance will be enhanced or risk will be reduced for funds that seek to provide exposure to certain quantitative investment characteristics ("factors"). Exposure to such investment factors may detract from performance in some market environments, perhaps for extended periods. In such circumstances, a fund may seek to maintain exposure to the targeted investment factors and not adjust to target different factors, which could result in losses.
Fixed income risks include interest-rate and credit risk. Typically, when interest rates rise, there is a corresponding decline in bond values. Credit risk refers to the possibility that the bond issuer will not be able to make principal and interest payments.
Diversification and asset allocation may not protect against market risk or loss of principal.
Transactions in shares of ETFs may result in brokerage commissions and will generate tax consequences. All regulated investment companies are obliged to distribute portfolio gains to shareholders.
The strategies discussed are strictly for illustrative and educational purposes and are not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. There is no guarantee that any strategies discussed will be effective.
The Funds are distributed by BlackRock Investments, LLC (together with its affiliates, "BlackRock").
The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Barclays, Bloomberg Finance L.P., BlackRock Index Services, LLC, Cohen & Steers Capital Management, Inc., European Public Real Estate Association (“EPRA® ”), FTSE International Limited (“FTSE”), ICE Data Services, LLC, India Index Services & Products Limited, JPMorgan Chase & Co., Japan Exchange Group, MSCI Inc., Markit Indices Limited, Morningstar, Inc., The NASDAQ OMX Group, Inc., National Association of Real Estate Investment Trusts (“NAREIT”), New York Stock Exchange, Inc., Russell or S&P Dow Jones Indices LLC. None of these companies make any representation regarding the advisability of investing in the Funds. With the exception of BlackRock Index Services, LLC, who is an affiliate, BlackRock Investments, LLC is not affiliated with the companies listed above.
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