BlackRock launches MSCI World sector ETFs in Europe

Oct 25th, 2019 | By | Category: Equities

BlackRock has launched five new ETFs in Europe providing exposure to the consumer discretionary, consumer staples, energy, healthcare, and information technology segments of the global equity market.

BlackRock unveils global sector ETFs in Europe

BlackRock now has three suites of sector ETFs in Europe, covering the global, US, and European equity markets.

The funds are linked to MSCI sector indices derived from the parent MSCI World Index, a reference for large and mid-cap companies from 23 developed market countries.

Stocks are assigned to sectors according to the Global Industry Classification Standard (GICS).

Constituents are weighted by float-adjusted market capitalization with constituents reconstituted and rebalanced quarterly.

The funds have listed on Deutsche Börse Xetra in euros and on Euronext Amsterdam in US dollars.

Each ETF comes with an expense ratio of 0.25% and distributes income to investors on a semi-annual basis.

They are as follows:

iShares MSCI World Consumer Discretionary Sector UCITS ETF (36BB GY); (WCDS NA)
iShares MSCI World Consumer Staples Sector UCITS ETF (3SUE GY); (WCSS NA)
iShares MSCI World Energy Sector UCITS ETF (5MVW GY); (WENS NA)
iShares MSCI World Health Care Sector UCITS ETF (CBUF GY); (WHCS NA)
iShares MSCI World Information Technology Sector UCITS ETF (AYEW GY); (WITS NA)

Although not confirmed, it is likely that BlackRock will complete the suite with ETFs on the communication services, financials, industrials, materials and utilities sectors in due course

They will come up against near-identical suites from rival issuers DWS, SPDR ETFs, and Lyxor. BlackRock appears to be looking to compete on price with its funds coming to market at 0.25%, five basis points cheaper than its competitors’ products.

In addition to the new global sector ETFs, BlackRock also offers European-domiciled ETFs based on US sectors (S&P 500) and European sectors (STOXX Europe 600).

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