LEVEL UP WITH ETFs
Discover what they can do and get a new perspective on ETFs today when building the foundation of your portfolio.
To start, they can be wrapped up in more ways than one
Latin American investors hold 27% of iShares ETF allocations in UCITS >3% up from 2014 (1) for 3 reasons:
1. Potential tax benefits
- Lower net withholding fees – UCITS ETFs may allow investors to save
- No estate tax – for certain European ETF jurisdictions (2)
IN PRACTICE.
See how this plays out.
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Scenario - US equities pay a dividend of $100
Past performance is not a reliable indicator of future results and should not be the sole factor of consideration when selecting a product.
All tax data is for illustration purposes only and does not represent tax advice. BlackRock does not provide tax advice, the content of the information provided is for information purposes only and is meant to provide investors and intermediaries with an overview as to some of the tax statuses of the iShares funds. This information is not intended to, nor does it, provide specific investment or tax advice, or to make any recommendations about the suitability of iShares for the circumstances of any particular investor. We recommend that clients consult with their own independent tax advisor should you have any further queries about how investing in an iShares fund will affect their tax position.
Scenario - US bonds pay coupons of $100
*QII (qualified interest income) relief will impact the effective WHT rate applied to an ETFs Fund Level distributions and therefore the return received by an investor. QII forms part of the American Jobs Creation Act of 2004. Some of the US iShares generate qualified interest income. The Act permits its a regulated investment company (“RIC”)
Past performance is not a reliable indicator of future results and should not be the sole factor of consideration when selecting a product.
All tax data is for illustration purposes only and does not represent tax advice. BlackRock does not provide tax advice, the content of the information provided is for information purposes only and is meant to provide investors and intermediaries with an overview as to some of the tax statuses of the iShares funds. This information is not intended to, nor does it, provide specific investment or tax advice, or to make any recommendations about the suitability of iShares for the circumstances of any particular investor. We recommend that clients consult with their own independent tax advisor should you have any further queries about how investing in an iShares fund will affect their tax position.
Scenario - Eurozone equities pay a dividend of $100
Past performance is not a reliable indicator of future results and should not be the sole factor of consideration when selecting a product.
All tax data is for illustration purposes only and does not represent tax advice. BlackRock does not provide tax advice, the content of the information provided is for information purposes only and is meant to provide investors and intermediaries with an overview as to some of the tax statuses of the iShares funds. This information is not intended to, nor does it, provide specific investment or tax advice, or to make any recommendations about the suitability of iShares for the circumstances of any particular investor. We recommend that clients consult with their own independent tax advisor should you have any further queries about how investing in an iShares fund will affect their tax position.
Scenario - Emerging market bonds pay coupons of $100
Past performance is not a reliable indicator of future results and should not be the sole factor of consideration when selecting a product.
All tax data is for illustration purposes only and does not represent tax advice. BlackRock does not provide tax advice, the content of the information provided is for information purposes only and is meant to provide investors and intermediaries with an overview as to some of the tax statuses of the iShares funds. This information is not intended to, nor does it, provide specific investment or tax advice, or to make any recommendations about the suitability of iShares for the circumstances of any particular investor. We recommend that clients consult with their own independent tax advisor should you have any further queries about how investing in an iShares fund will affect their tax position.
2. Growing liquidity
- The UCITS industry is accelerating with an annual growth rate of 19% since the financial crisis (3)
European domiciled ETP industry: AUM and # of ETPS
As of 04/30/2020.
Source: BlackRock ETP Landscape Industry Highlights. $ figures shown in USD.
- EMEA ETF ecosystem transparency has evolved with reporting and aggregated exchange trading volumes now established
- Average trading spreads of UCITS are falling
3. Unique features and exposures
- Accumulating and distributing ETFs – enable the treatment of your income to be controlled
- Multiple currencies – align the reporting and trading currency to the currency of your exposure
- New and different exposures – Flexibility, precision and lower costs are delivered through iShares’ broad UCITS range
GO FURTHER.
These features enable participation in:
FIXED INCOME
Investors are increasingly turning to bond ETFs in today's environment to seek income, diversify equity risk and put cash to work.
SUSTAINABLE INVESTING
Now more than ever, investors are turning to sustainable ETFs in today's markets.
FACTOR INVESTING
Factor investing enables investors to smartly capture the power of factor ETFs in their portfolios in a cost-efficient structure.
THE ETF UNIVERSE
The ETF Universe has been rapidly expanding to include almost every asset class, sector and investment goal imaginable.
1 As of September 30, 2019. Source: BlackRock $ figures shown in USD (1) Figures based on iShares and BlackRock ETF asset data, as a proxy for overall market
2 All tax data is for illustration purposes only and does not represent tax advice. BlackRock does not provide tax advice, the content of the information provided is for information purposes only and is meant to provide investors and intermediaries with an overview as to some of the tax statuses of the iShares funds. This information is not intended to, nor does it, provide specific investment or tax advice, or to make any recommendations about the suitability of iShares for the circumstances of any particular investor. We recommend that clients consult with their own independent tax advisor should you have any further queries about how investing in an iShares fund will affect their tax position. BlackRock does not provide tax advice and does not intend to provide any guidance as to estate tax implications for investors holding positions in European domiciled ETFs. 33 -193 bps range based on S&P 500, and JPM EMBI Global Core TR USD Index ETF com
3 BlackRock ETP Landscape Industry Highlights. $ figures shown in USD
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