BlackRock is expanding its range of US equity exposures with the launch today of the iShares S&P Mid Cap 400 Swap UCITS ETF (SP4S), giving investors expanded choice in how to tailor exposure to US mid-cap companies.
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Manuela Sperandeo, Head of Europe & Middle East iShares Product at BlackRock
iShares S&P Mid Cap 400 Swap UCITS ETF (SP4S)
The S&P MidCap 400 Index tracks the performance of mid-sized U.S companies. Mid-cap companies often combine the growth potential of smaller firms with the stability of larger ones, making them an attractive segment for diversified equity exposure.
Swap-based ETFs can efficiently replicate indices, providing precise exposure by using derivatives to replicate its performance, often resulting in lower total cost of ownership and closer tracking of the index. BlackRock’s European iShares swap-based ETF platform reduces risk by using a robust multi-counterparty model. The launch brings BlackRock’s iShares Swap UCITS ETF range to eight funds spanning global equities including multiple US exposures and over $14 billion in assets.
Manuela Sperandeo, Head of Europe & Middle East iShares Product at BlackRock said, “Clients are increasingly looking for more granular ways to tailor their US equity exposures and take advantage of market dispersion. BlackRock’s innovative Swap ETF range is built with quality, transparency and performance to provide clients with a broad choice of solutions that access markets efficiently.”
SP4S can be used as a core component of a U.S. allocation and can enable investors to build their desired exposure by over or under weighting certain market cap segments, while reducing the overall total cost of ownership.
The fund will list on Euronext Amsterdam with a TER of 0.20%.
Source: ETFWorld.co.uk
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