iShares "Low Vol" ETFs Top $4B in AUM
BlackRock's (NYSE: BLK) iShares unit, the world's largest ETF issuer, said today its suite of four minimum volatility funds has crossed a combined $4 billion in assets under management.
The iShares MSCI Emerging Markets Minimum Volatility Index Fund (NYSE: EEMV) and the iShares MSCI USA Minimum Volatility Index Fund (NYSE: USMV), with over $1.4 billion and $1.6 billion in AUM, respectively, have lead the way for the iShares low volatility lineup.
Since January, EEMV and USMV have both topped the $1 billion in assets mark, attracting $553.9 million and $787.8 million in new flows, respectively. The two ETFs are the sixth and seventh U.S. ETFs launched in the last two years to reach $1 billion in net assets, according to iShares.
As was previously noted with EEMV, which has been one of the top-performing diversified emerging markets ETFs since its debut, it was merely a matter of "when" not "if" the fund crossed the $1 billion in AUM threshold.
"In an environment in which macro uncertainty continues to lead to financial market volatility, investors are complimenting their portfolios with iShares Minimum Volatility suite of products," said Daniel Gamba, head of iShares Americas Institutional Business at BlackRock, in the statement. "Clients are attracted to iShares Minimum Volatility products for the risk-reward trade-offs and ease of implementations these ETFs offer. Investors also recognize there is significant evidence that Minimum Volatility funds improve risk-adjusted returns, while also cushioning portfolios during periods of heightened turbulence."
The iShares MSCI EAFE Minimum Volatility Index Fund (NYSE: EFAV), the low volatility answer to the popular iShares MSCI EAFE Index Fund (NYSE: EFA), has over $287.2 million in assets while the iShares MSCI All Country World Minimum Volatility Index Fund (NYSE: ACWV) has $768 million in AUM.
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