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BlackRock Launches Double-Smart-Beta ETF Suite

5 new smart-beta ETFs launched by iShares. IShares adds another layer of smart-beta to currency-hedged ETFs. Minimum volatility helps further stabilize returns on already-popular ETFs. By Remzi Gokmen and Tom Lydon Blackrock has added to it’s iShares ETF suite by bulking up its smart-beta offerings with 5 new ETFs. The new exchange traded funds look to double their smart-beta approach by combining the minimum volatility strategy with a currency-hedged one. Their minimum volatility ETFs aim to curb some of the spikes that occur in a up and down market while staying invested while the currency-hedging approach has exploded this year with the forex market at heightened volatility and the dollar appreciating and cutting into investor’s international returns. Below are the names and tickers for the new suite. All will trade on the BATS exchange. iShares Currency Hedged MSCI ACWI Minimum Volatility ETF (BATS: HACV ) iShares Currency Hedged MSCI EAFE Minimum Volatility ETF (BATS: HEFV ) iShares Currency Hedged MSCI EM Minimum Volatility ETF (BATS: HEMV ) iShares Currency Hedged MSCI Europe Minimum Volatility ETF (BATS: HEUV ) iShares Currency Hedged MSCI Europe Small-Cap ETF (BATS: HEUS ) Robert Nestor, Managing Director and Head of iShares Smart Beta Strategy at Blackrock, said: Our minimum volatility suite allows investors the opportunity to gain broad market exposure and the potential for long-term growth, with the potential for less risk. Extending the suite to include currency hedged funds means those investors looking for broad minimum volatility exposure now have the added flexibility to do so on a hedged or unhedged basis, depending on their preferences. The iShares minimum volatility suite has enjoyed a great year with $2.8bn of net inflows this year and a total of $15.1bn in assets under management. iShares expansion into the smart-beta space has been exponential as they now have $125bn in assets under management in their smart beta products globally. The ETFs will track MSCI indexes that their minimum volatility cousins are already indexing. Diana Tidd, Managing Director and Global Head of MSCI Equity Index Products said: With the continued growth of global investing, the importance of managing currency exposures has moved to the forefront of many investors’ minds. Likewise, a growing number of investors are targeting specific factor exposures such as low volatility. MSCI’s Minimum Volatility 100% Hedged to USD Indexes reflect the performance of the combination of these two investment strategies. We are pleased BlackRock has further expanded their suite of iShares ETFs based on MSCI Minimum Volatility Indexes. The lone product in the suite that doesn’t feature a minimum volatility approach is HEUS. HEUS takes a small-cap spin to their European currency-hedged strategy. Small-caps tend to surge in recovery environments and Mario Draghi’s recent economic stimulus measure’s may stoke smaller enterprises’ growth. A snapshot of a popular iShares minimum volatility ETF shows some good signs. HEMV will duplicate the results of the iShares MSCI Europe Minimum Volatility ETF (NYSEARCA: EUMV ) with the currency-hedged spin, and EUMV kicked above its 200 day moving average in the October rally. (click to enlarge)