BlackRock Asset Management Canada has introduced a suite of minimum-volatility ETFs to the Canadian marketplace.
The five new funds will provide Canadians with access to Canada and the U.S., as well as developed international, global and emerging markets. They begin trading on the TSX today.
The typical market portfolio seeks to balance risk by including both higher and lower risk equities, says Blackrock. But, these minimum volatility ETFs provide steady performance that helps insulate against spikes in returns.
The new funds are:
- iShares MSCI Canada Minimum Volatility Index Fund
- iShares MSCI USA Minimum Volatility Index Fund
- iShares MSCI EAFE Minimum Volatility Index Fund
- iShares MSCI Emerging Markets Minimum Volatility Index Fund
- iShares MSCI All Country World Minimum Volatility Index Fund
All five track minimum volatility indexes created by MSCI—the indexes are constructed using parent MSCI indexes, which are capitalization-weighted.
“Minimum volatility ETFs can be used as a holding strategy to generate steady long-term growth,” says Oliver McMahon, head of iShares Product Management at BlackRock Canada.