HELP KEEP YOUR CLIENTS INVESTED
Market volatility can unnerve investors, making them abandon their plan. Consider a new approach – iShares Minimum Volatility ETFs are core equity investments that have delivered market-like returns with less risk, so you can give your clients the confidence to stay invested.
As an investor, you have goals. You make a plan to invest for the future. Now, all you have to do is stick to it. That sounds pretty easy. And it is, until volatility strikes.
iShares can help shift your perspective so your investments can seek to limit exposure to the sharp twists of the market. This may provide a less turbulent experience for your financial plan, making it easier to stay on track. With iShares minimum volatility ETFs, you can gain exposure to a portfolio of stocks that are less risky, with the potential to deliver long-term returns similar to the broader stock market.
And iShares makes it easy to get started. Get broad exposure to lower-volatility large-cap U.S. stocks with USMV. Looking for exposure to international developed-market stocks with potentially less volatility? consider EFAV. And finally, for exposure to often-volatile emerging market stocks, consider EEMV to help manage market turbulence. And some simple math shows us the potential power of minimum volatility investing. If your portfolio falls by 20%, you have to gain 25% of that smaller portfolio just to get back to where you started. If it falls by 50%, it needs to rebound 100%.
Don’t let stock market volatility throw you off track. Stay invested and keep moving forward with iShares Minimum Volatility ETFs.
Morningstar as of 12/31/2023. Based on performance between 11/1/11 – 12/31/2023. Funds incepted on 10/18/11. Annualized risk represented by standard deviation which measures how dispersed returns are around the average. A higher standard deviation indicates that returns are spread out over a larger range of values and thus, more volatile.
Since inception in 2011, iShares Minimum Volatility ETFs have captured meaningful gains during upswings, and minimized losses during declines in U.S., international and emerging markets.
For example, USMV has captured 76% of the market upside vs. only 68% of the market downside since inception.
Morningstar as of 12/31/2023. Based on fund and index returns from 11/1/11–12/31/2023. Funds incepted on 10/18/11. Data compares USMV to S&P 500, EFAV to the MSCI EAFE Index and EEMV to the MSCI Emerging Markets Index.
The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted. For most recent month-end performance and standardized performance, click the fund names below. Index returns are for illustrative purposes only and do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged, and one cannot invest directly in an index.
These strategies are sector constrained, giving investors broad and unbiased market exposure, so they can fit in the core of their portfolio.
Get started by building a sample portfolio with min vol at the core or stress test a current portfolio against market shocks to see the range of outcomes that could occur.
Build a core portfolio using the Morningstar Style Box framework
Build a core portfolio using the Morningstar Style Box framework
Build a min vol portfolio
This sample portfolio replaces traditional equity portfolio exposures with minimum volatility ETFs.
Test an existing portfolio
Stress test client portfolios to see how they could react to 30+ potential market events.
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 visiting the iShares ETF and BlackRock Mutual Fund prospectus pages. Read the prospectus carefully before investing.
Investing involves risk, including possible loss of principal.
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.
The iShares Minimum Volatility Funds may experience more than minimum volatility as there is no guarantee that the underlying index's strategy of seeking to lower volatility will be successful.
Asset allocation and diversification may not protect against market risk, loss of principal or volatility of returns.
The strategies discussed are strictly for illustrative and educational purposes and are not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. There is no guarantee that any strategies discussed will be effective.
The information presented does not take into consideration commissions, tax implications, or other transactions costs, which may significantly affect the economic consequences of a given strategy or investment decision.
This material represents an assessment of the market environment as of the date indicated; is subject to change; and is not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the funds or any issuer or security in particular.
The tools are provided on an "as-is" basis. BlackRock expressly disclaims all warranties, express or implied, statutory or otherwise with respect to the tools (and any results obtained from their use) including, without limitation, all warranties or merchantability, fitness for a particular purpose or use, accuracy, completeness, originality and/or non-infringement. In no event shall BlackRock have any liability for any claims, damages, obligations, liabilities or losses relating to the tools including, without limitation, any liability for any direct, indirect, special, incidental, punitive and/or consequential damages (including loss of profits or principal).
This document contains general information only and does not take into account an individual's financial circumstances. This information should not be relied upon as a primary basis for an investment decision. Rather, an assessment should be made as to whether the information is appropriate in individual circumstances and consideration should be given to talking to a financial advisor before making an investment decision.
The iShares Funds are not sponsored, endorsed, issued, sold or promoted by MSCI Inc., nor does this company make any representation regarding the advisability of investing in the Funds. BlackRock is not affiliated with MSCI Inc.
The Funds are distributed by BlackRock Investments, LLC (together with its affiliates, "BlackRock").
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