iShares Factor ETFs

A man stands on a rock by the ocean, gazing at the waves under a clear blue sky.
A man stands on a rock by the ocean, gazing at the waves under a clear blue sky.

What are factor ETFs?

Investing in specific factors may help investors reach their goals by helping to reduce portfolio volatility or improve returns. Factors are the persistent and well-documented asset characteristics that have historically driven investment risk and return.

Factors are not new — they have been present in portfolios for decades. But exchange traded funds (ETFs) helped to revolutionize how investors access these historically rewarded strategies by capturing the power of factors (sometimes called “smart beta”) in a transparent and cost-effective way.

iShares Factor ETFs Spotlight

We have identified five factors – value, quality, momentum, size, and minimum volatility – that have shown to be resilient across time, markets, asset classes, and have a strong economic rationale.

Single factor

Targets exposure to a single factor that could be a long-term driver of returns.
Multifactor

Seeks to provide diversified exposure to a variety of factors.
Minimum volatility

Seeks to invest in a balanced portfolio of stocks that display lower overall volatility than the broad market.