BlackRock’s iShares, begun trading nine new Multifactor US Sector ETFs on Thursday, May 12, 2016:
Symbol |
Name of ETF |
Index |
| FNCF | iShares Edge MSCI Multifactor Financials ETF | MSCI USA Financials Diversified Multiple-Factor Capped Index |
| ERGF | iShares Edge MSCI Multifactor Energy ETF | MSCI USA Energy Diversified Multiple-Factor Capped Index |
| TCHF | iShares Edge MSCI Multifactor Technology ETF | MSCI USA Information Technology Diversified Multiple-Factor Capped Index |
| INDF | iShares Edge MSCI Multifactor Industrials ETF | MSCI USA Industrials Diversified Multiple-Factor Capped Index |
| CNSF | iShares Edge MSCI Multifactor Consumer Staples ETF | MSCI USA Consumer Staples Diversified Multiple-Factor Capped Index |
| CNDF | iShares Edge MSCI Multifactor Consumer Discretionary ETF | MSCI USA Consumer Discretionary Diversified Multiple-Factor Capped Index |
| HCRF | iShares Edge MSCI Multifactor Healthcare ETF | MSCI USA Health Care Diversified Multiple-Factor Capped Index |
| UTLF | iShares Edge MSCI Multifactor Utilities ETF | MSCI USA Utilities Diversified Multiple-Factor Capped Index |
| MATF | iShares Edge MSCI Multifactor Materials ETF | MSCI USA Materials Diversified Multiple-Factor Capped Index |
REFERENCE INDICES:
Each reference index consists of US equity securities from the respective MSCI USA sector index that have high exposure to 4 investment style factors:
value, quality, momentum and low size, while maintaining a level of risk similar to that of the Parent Index.
MSCI, in selecting equity securities from the Parent Index, assigns a composite score for a security through a proprietary model based on 4 equally-weighted investment style factors: the value score is derived from a company’s valuation ratios (e.g., forward share price to earnings, share price to book value and enterprise value to operating cash flow); the quality score is calculated from a company’s underlying metrics (e.g., return-onequity, debt-to-equity and earnings variability); the momentum score is calculated through a global equity model, which aims to measure a security’s sustained relative performance against the global market over a2-year period and against other securities based in the same country over the previous 6 and 12 months (with a 1 month lag); and the low size score is derived from a global equity model that seeks to measure the market capitalization of a company as compared to other companies based in the same country.
Net Expense Ratio: 0.35% for each