Multi-asset ETFs | iShares by BlackRock

iShares ETFs cover a broad range of asset classes, risk profiles and investment outcomes. To understand the appropriateness of these Funds for your investment objective, please visit our product webpages.
Find out more about iShares ETFs products:

iShares High Growth ESG ETF

https://www.blackrock.com/au/products/327642/

This product is likely to be appropriate for a consumer:
-who is seeking capital growth and/or income distribution

-using the product for a core component of their portfolio or less
-with a minimum investment timeframe of 5 years, and
-with a medium to high risk/return profile

iShares Balanced ESG ETF

https://www.blackrock.com/au/products/327628/

This product is likely to be appropriate for a consumer:

-who is seeking capital preservation and/or income distribution
-using the product for a core component of their portfolio or less
-with a minimum investment timeframe of 3 years, and
-with a medium risk/return profile

What are multi-asset ETFs? Multi-asset ETFs – also known as portfolio ETFs - invest in different types of assets such as bonds and equities to create a broadly diversified investment portfolio, all within a single ETF. This is done by investing in a few different ETFs to create an investment portfolio, effectively a fund of ETFs. With just one simple and cost-effective transaction, you can invest in a diversified portfolio across a broad range of asset types that aim for long-term risk-adjusted returns.

How are multi-asset ETFs different from other ETFs? Most ETFs aim to track the performance of a particular index, say the ASX 200. They do this by holding the underlying stocks that make up that index and weighted accordingly. Multi-asset ETFs, on the other hand, tend to be goals focused rather than track the performance of an index. For example, they might look to produce income, generate growth, or give exposure to a broad set of industries or themes that a single ETF may not be able to access.

What investments go into a multi-asset ETF? Putting together a portfolio of ETFs, or any investment portfolio for that matter, broadly depends on two considerations: firstly, what do you want from your investment – growth, or income, or exposure to sustainable investments, for example? And second, what level of risk are you prepared to take for the outcome you want.

As with any investment portfolio, each asset class in the ETF contributes in a different way. Equities primarily focus on capital growth whilst bonds aim to generate an income. The mix of equities and bonds can have a big impact on the long-term returns as well as the level of risk in the portfolio.

Using BlackRock’s proprietary portfolio construction and risk methodology, we’ve built ETFs to provide some income, generate growth or access emerging trends, with an appropriate level of risk. Add to this, many of our multi-asset ETFs are sustainable which means they meet certain environmental, social and governance – or ESG – criteria.

What does sustainable investing and ESG mean?

ESG is the abbreviation for certain criteria relating to the environment (the E), social (the S) and corporate governance (and the G).

We see sustainable investing as the combination of traditional investment approaches with insights into environmental, social and governance (ESG) factors. We are convinced that the increasing focus on sustainability will put the spotlight on companies that place ESG factors at the heart of their decisions. Taking ESG insights into account can help investors build more resilient portfolios with less volatile returns.

For more on sustainable investing please refer to our website at blackrock.com.au.

What are the benefits of investing in multi-asset ETFs?

BlackRock’s multi-asset ETFs are simple, diversified, and sustainable. With just one simple transaction, you can get instant diversification across different asset classes. All of BlackRock’s ASX listed multi-asset portfolios are designed to leverage ESG products where available while staying within a given risk profile.

BlackRock’s multi-asset ETFs are built using our proprietary portfolio construction and risk-management processes. This means the ETFs are managed by our expert team to ensure the best possible returns for a pre-defined level of risk.

You can have low-cost access to the financial markets, meaning you keep more of your returns.

To find out more please refer to our website at blackrock.com.au

Are there any downsides to multi-asset ETFs?

As with any investment you need to make sure a multi-asset ETF is appropriate for you, your circumstances, and the outcomes you want. And like any investment the value can go up as well as down.

To find out more, visit the website at BlackRock.com.au or speak to a financial adviser.

What are multi-asset ETFs?

With just one simple and cost-effective transaction, you can invest in a diversified portfolio across a broad range of asset types that aim for long-term risk-adjusted returns.

Why iShares multi-asset ETFs

Whole Portfolio Solution

A single and simple investing solution in one trade, accessing global equity and bond markets with over 7,000 stocks and bonds in one portfolio.

Core Exposures

Use IGRO/IBAL as your core portfolio holding within your SMSF, so you can pursue high conviction satellite holdings to complement your portfolio.

Benefit from BlackRock’s 30+ years’ experience managing multi-asset portfolios, leveraging our global insight, risk management and portfolio analytics platform.³

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Build your savings, generate income

For new and experienced investors alike, achieving your long-term investment goals can be a delicate balance between managing risk, growing your savings pot, and generating sufficient income.

Multi-asset exchange traded funds (ETFs) are a tool to help provide a strong foundation to your portfolio, either for investors who don’t have the time or the desire to make asset allocation decisions, or those who want a strong foundation from which to start investing.

Putting all your eggs in one basket

The 2023 ASX Investor Study found that 58% of Australian investors owned domestic shares directly, while only 16% held international shares¹. According to S&P Dow Jones, the Australian market only represents around 2% of the global equity market² – so it’s a relatively small pond to be fishing in when it comes to return opportunities.

A high concentration in individual stocks can be rewarding but it can also carry significant risks, and is akin to putting many of your eggs in one basket. If Australian shares fall, there is no cushion to soften your losses (or what will be your potential future income).

The chart demonstrates how returns for individual stocks can constantly fluctuate. A measure of risk is the ability to withstand the highs and lows of these investments – if an investor wanted to manage this particular risk, a multi-asset strategy can potentially help.

Performance returns of Top 3 ASX Stocks vs iShares multi-asset ETFs

Bloomberg, Morningstar 20/10/2023. Past performance does not guarantee future returns.

Diversify your basket by going beyond Aussie shores (and shares!)

All-in-one solution

iShares multi-asset ETFs are an all-in-one solution that seek to provide investors access to multiple asset classes, geographies and sectors, in one single trade.

More exposure

If one asset class performs negatively, the other asset classes could potentially cushion some of those losses.

30+ year track record of managing multi-asset portfolios

iShares multi-asset ETFs are managed by BlackRock, using our 30+ year track record of managing multi-asset portfolios in Australia.³

Note:

Diversification and asset allocation may not fully protect you from market risk.

iShares multi-asset ETFs

iShares offers two quality multi-asset ETFs to help cover more bases in your portfolio at a low cost - iShares High Growth ESG ETF and iShares Balanced ESG ETF.

These ETFs can be used as a single portfolio solution, or used as a foundational exposure to which you can supplement additional investments using other ETFs or stocks.