In June 2022, BlackRock and STOXX teamed up as the asset manager enhanced its suite of multifactor ETFs with a balanced and modern style factor approach. Today, that suite of iShares ETFs has over USD 10 billion in assets under management.
Multifactor investing continues to attract strong interest as a way to distribute allocations across several sources of return premia, increasing opportunities for incremental returns and diversifying cyclical risks. An optimized approach to constructing multifactor indices means investors get well-balanced exposure to all factors and avoid uncompensated bets. The ETFs, meanwhile, have made the strategy accessible to all investors in a low-cost, systematic and transparent manner.
In this interview, Priya Panse, Lead Strategist for BlackRock’s US Factor ETFs business, Arun Singhal, Head of Product Management and Client Success at STOXX, and Brian Spinelli, CIO of Halbert Hargrove, discuss the main attributes and advantages of the multifactor ETF strategies. They also provide an outlook on where factor investing is headed in coming years.