BlackRock’s iShares launched nine multifactor sector ETFs today.
The “Edge” funds will use the same basic methodology of the iShares FactorSelect ETFs, highlighting the value, quality, momentum and small size factors. Each comes with an expense ratio of 0.35%. The funds are listed on the Bats Exchange, which owns ETF.com
The similarity of the methodologies suggests that the iShares FactorSelect family could be undergoing a name change.
The nine funds include the following:
- iShares Edge MSCI Multifactor Consumer Staples ETF (CNSF)
- iShares Edge MSCI Multifactor Consumer Discretionary ETF (CNDF)
- iShares Edge MSCI Multifactor Utilities ETF (UTLF)
- iShares Edge MSCI Multifactor Technology ETF (TCHF)
- iShares Edge MSCI Multifactor Materials ETF (MATF)
- iShares Edge MSCI Multifactor Industrials ETF (INDF)
- iShares Edge MSCI Multifactor Healthcare ETF (HCRF)
- iShares Edge MSCI Multifactor Financials ETF (FNCF)
- iShares Edge MSCI Multifactor Energy ETF (ERGF)
John Hancock was the first firm to roll out multifactor sector ETFs, launching them in September 2015 and March of this year. So far, the other multifactor ETFs to launch over the last few years have focused on regions and major countries.
The John Hancock ETFs track indexes by Dimensional Fund Advisors and highlight the small size, low relative price, profitability and momentum factors. As with the iShares ETFs, there is no telecommunications sector in their multifactor lineup. Interestingly, the John Hancock sector ETFs have expense ratios of 0.50%, 15 basis points more than the fees charged by iShares.
J.P. Morgan Adds Midcap Fund
Today J.P. Morgan rolled out another addition to its “Diversified Return” family of smart-beta ETFs. The JPMorgan Diversified Return U.S. Mid Cap Equity ETF (JPME) comes with an expense ratio of 0.34% and listed on the NYSE Arca.
The Diversified Return methodology targets the relative valuation, momentum and quality factors. JPME tracks the Russell Midcap Diversified Factor Index, and as of April 29, its components had market capitalizations between $159.6 million and $29.4 billion.
There are currently seven other ETFs in J.P. Morgan’s Diversified Return family; JPME makes eight.
Contact Heather Bell at [email protected].