iShares Launches First U.S. Sector ETFs in Europe

The funds cover energy, consumer discretionary, health care, IT and financials

RachaelRavesz_100x66.jpg
|
Editor, etf.com Europe
|
Reviewed by: Rachael Revesz
,
Edited by: Rachael Revesz

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.

 

Rachael Revesz joined etf.com in August 2013 as staff writer. Previously an investment reporter at Citywire, she has a background in writing content for retail financial advisors and has covered a wide range of subjects in finance. Revesz studied journalism at PMA Media, which has since merged with the Press Association. She also holds a B.A. in modern languages from Durham University, as well as CF1 and CF2 financial planning certificates from the CII.