EEMV Profile
The iShares MSCI Emerging Markets Minimum Volatility Factor ETF is designed to offer investors exposure to equity securities in emerging markets while aiming to reduce overall portfolio risk through lower volatility. The fund tracks the MSCI Emerging Markets Minimum Volatility Index, which is specifically constructed to reflect the performance of emerging market equities exhibiting lower volatility compared to the broader universe of large- and mid-cap stocks in these markets.
In line with its investment strategy, the fund will allocate at least 80% of its assets to securities that are part of the underlying index or to investments with similar economic characteristics. The MSCI Emerging Markets Minimum Volatility Index is composed of stocks from emerging markets that are selected based on their lower price fluctuations and risk characteristics, as determined by a proprietary methodology. This approach aims to minimize the impact of market volatility on the fund’s performance while providing exposure to the growth potential of emerging economies.
The index includes a diverse range of sectors and industries, reflecting the broad economic landscape of emerging markets. By focusing on securities with lower volatility, the fund seeks to offer investors a more stable investment experience compared to traditional emerging market equity funds. This is achieved through advanced quantitative techniques that adjust the index's composition to favor stocks with lower historical volatility and risk profiles.
Investors in the iShares MSCI Emerging Markets Minimum Volatility Factor ETF can benefit from exposure to emerging markets' growth opportunities while potentially experiencing less dramatic swings in value. This can be particularly appealing to those looking for a balanced approach to investing in volatile markets. However, as with all investments, potential investors should carefully consider their investment objectives and risk tolerance before investing in this ETF.
|
