iShares Debuts Style-Based Multifactor ETFs

January 16, 2020

Today, BlackRock’s iShares arm rolled out a pair of ETFs tracking factor-based versions of the Russell 1000 Index. The iShares Factors US Value Style ETF (STLV) and the iShares Factors US Growth Style ETF (STLG) have underlying indexes derived from the value and growth versions of the Russell 1000, and select companies from the parent indexes that offer exposure to the momentum, quality, value, size and low volatility factors.

STLV and STLG both have expense ratios of 0.25% and list on Cboe Global Markets, the parent company of ETF.com.

The two parent indexes capture value and growth universes that are further winnowed by the five factor screens via a composite factor score, allowing investors to get value and growth tilted multifactor exposures. STLV’s underlying index includes 153 components, while STLG’s underlying index has 129 components.

This is not iShares' first multifactor product; the issuer offers several such products, including the $970 million iShares Edge MSCI Multifactor U.S.A. ETF (LRGF), which targets the quality, value, momentum and size factors. LRGF comes with an expense ratio of 0.20% and launched in 2015. However, STLV and STLG are the first funds from iShares to offer multifactor exposure paired with style tilts.

Contact Heather Bell at [email protected]

 

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