iShares Launches First U.S. Sector ETFs in Europe

iShares has dipped a toe into the water with the launch of its first U.S. sector specific exchange traded funds (ETFs) in Europe, with the aim to offer investors more targeted exposure.

The five physically replicated funds cover energy, consumer discretionary, health care, information technology and financials and all have annual fees of 0.15 percent.

The underlying indexes pick stocks from the parent index S&P 500 and are by nature more concentrated – the energy fund (ticker IUES) tracks just 40 stocks while the consumer discretionary fund (ticker IUCD) replicates returns from 85 companies.

iShares joins the trend of launching U.S. sector funds along with other providers like SPDR, Source and Lyxor.

The provider has made other significant moves this year, including the launch of its multi-factor smart beta ETF range, and has expanded its currency hedged ETF range.