BlackRock's Canadian subsidiary has launched five new exchanged-traded funds designed to offer Great North investors exposure to domestic, international, developed and emerging markets while minimizing volatility.
Canadian investors requested the iShares ETFs, according to Mary Anne Wiley, managing director and head of iShares for BlackRock Canada. These funds are the first ones targeted to Canadian investors that combine minimum volatility and global market exposure. The ETFs can help provide a portfolio with downside protection while seeking to maintain some exposure to upside price movement, she said.
"With the uncertainty in today's markets, investors want to capture potential market upside but still protect their assets," Wiley said. "It's a compelling option for investors looking for a contrast or complement to other portfolio management strategies and will also optimize risk-adjusted returns over the long term."
The new ETFs are:
- iShares MSCI Canada Minimum Volatility Index Fund
- iShares MSCI USA Minimum Volatility Index Fund
- iShares MSCI EAFE Minimum Volatility Index Fund
- iShares MSCI Emerging Markets Minimum Volatility Index Fund
- iShares MSCI All Country World Minimum Volatility Index Fund
Minimum volatility ETFs seek to track steady performance that helps insulate against spikes in returns, Wiley added.
The ETFs track minimum volatility indexes created by MSCI.