BlackRock Updates Multifactor ETF Suite to Serve as Portfolio Building Blocks

NEW YORK--(BUSINESS WIRE)--Effective today, BlackRock implemented changes to the iShares Multifactor suite, bringing enhanced systematic multifactor investing capabilities to the foundation of portfolio construction. The iShares US Equity Factor ETF (LRGF) and the iShares International Equity Factor ETF (INTF) updates are as follows:

Summary of Enhancements

	LRGF	INTF
New Fund Name	iShares US Equity Factor ETF	iShares International Equity Factor ETF
New Investment Objective	Seeks to track the investment results of an index composed of U.S. large- and mid-cap stocks that have favorable exposure to target style factors subject to constraints.	Seeks to track the investment results of an index composed of global developed market large- and mid-cap stocks, excluding the US, that have favorable exposure to target style factors subject to constraints.
New Index Provider: Qontigo	STOXX US Equity Factor Index	STOXX International Equity Factor Index
Expense Ratio^1	0.08%	0.15%

“Investors and advisors alike can benefit by implementing thoughtful exposure to factors when building portfolios across asset classes and sectors,” said Lukas Smart, Managing Director, Head of U.S. iShares Sustainable and Factors at BlackRock. “Our multifactor ETFs of mid and large-cap stocks enforce balanced, consistent positioning to five historically-rewarded factors at a low cost. Integrating factors can increase opportunities for incremental returns and be a differentiating strategy for core holdings used for long-term goals such as retirement.”²

Factor Innovation

Factors look beyond standard market exposures, utilizing characteristics such as value, quality, momentum, low size, and low volatility to drive performance. LRGF and INTF combine traditional factor metrics such as dividend yields, gross profitability and price momentum with newly identified analytics to enable deeper access to each of these five factors.

“The capital markets continue to evolve, improving our understanding of the underlying forces behind investment returns,” said Dr. Andrew Ang, Head of Factors, Sustainable and Solutions for BlackRock Systematic. “Combining traditional and previously untapped factor insights, iShares’ Multifactor ETFs have innovated in how market participants can capture factors and has helped them construct diversified multifactor portfolios with efficiency, with affordability and with transparency.”

BlackRock has participated in the development of the industry’s different systematic investment strategies over the last 35 years through quantitative research and risk management oversight. iShares’ factor ETF platform includes 44 products with nearly $164 billion in AUM across domestic, international, and emerging markets within both equities and fixed income.³ For more information, please visit https://www.ishares.com/us/strategies/smart-beta-investing.

About BlackRock

BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit www.blackrock.com/corporate

About iShares

iShares unlocks opportunity across markets to meet the evolving needs of investors. With more than twenty years of experience, a global line-up of 900+ exchange traded funds (ETFs) and $3.15 trillion in assets under management as of March 31, 2022, iShares continues to drive progress for the financial industry. iShares funds are powered by the expert portfolio and risk management of BlackRock.

Carefully consider the Funds' investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds' prospectuses or, if available, the summary prospectuses which may be obtained by visiting www.iShares.com or www.blackrock.com. Read the prospectus carefully before investing.

Investing involves risk, including possible loss of principal.

Buying and selling shares of ETFs may result in brokerage commissions.

There can be no assurance that performance will be enhanced or risk will be reduced for funds that seek to provide exposure to certain quantitative investment characteristics ("factors"). Exposure to such investment factors may detract from performance in some market environments, perhaps for extended periods. In such circumstances, a fund may seek to maintain exposure to the targeted investment factors and not adjust to target different factors, which could result in losses.

Prepared by BlackRock Investments, LLC, member FINRA.

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by STOXX Ltd., nor does this company make any representation regarding the advisability of investing in the Funds. BlackRock is not affiliated with STOXX Ltd.

©2022 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are trademarks of BlackRock, Inc., or its subsidiaries in the United States and elsewhere.
All other marks are the property of their respective owners.

¹ Expense ratio reductions effective as of March 31, 2022.
² BlackRock, “Next Evolution in Factor Investing”
³ BlackRock, as of May 25, 2022