BlackRock launches four new revenue-based iShares ETFs: Domestic and Foreign Focus for Europe and the UK

These are first-of-their-kind products on the market. They use a quantitative filter to divide regional indices into two distinct baskets: Domestic Focus, which includes companies generating at least 50% of their revenue in their home region, and Foreign Focus, which comprises companies with more than 50% of their revenue generated internationally.

The four ETFs launched are:

• iShares Europe Domestic Focus UCITS ETF (ticker EURP), listed on Euronext Amsterdam, with a TER of 0.25%;
• iShares Europe Foreign Focus UCITS ETF (ticker EUFG), listed on Euronext Amsterdam, TER 0.25%;
• iShares UK Domestic Focus UCITS ETF (ticker KDOM), listed on the London Stock Exchange, TER 0.25%;
• iShares UK Foreign Focus UCITS ETF (ticker KFOR), listed on the London Stock Exchange, TER 0.25%.

The indices are constructed using FactSet’s GeoRevenue data, which tracks geographical exposure based on where companies actually generate their revenue. The database covers approximately 50,000 companies across 280 regions. BlackRock states that this approach is based on over a decade of academic and industry research.

Why revenue matters more than registered office

The logic is simple: a company listed in London or Paris may generate most of its profits outside its home country. Consequently, a national or regional index increasingly incorporates global growth dynamics, not just domestic ones. Separating the two components allows investors to allocate capital more precisely, depending on whether they wish to gain exposure to domestic demand or international revenue streams.

From a portfolio construction perspective, BlackRock identifies two main applications. The first is tactical allocation: investors can express their macroeconomic views by adjusting exposure between domestic and international components more clearly than with traditional country-based indices. The second is strategic diversification: by holding both exposures, investors can make an informed decision on what proportion of their regional allocation is driven by domestic market demand versus global flows.

The context: a European market seeing record inflows

The launch comes at a time of unprecedented demand for European equity instruments. According to ETFGI, the European ETF industry saw record net inflows of $396.84 billion in 2025, bringing total assets to a new all-time high of $3.22 trillion at the end of December. Equity ETFs alone attracted $262.15 billion over the year.

BlackRock confirmed that in 2025, European equity ETPs recorded record inflows of $91.1 billion, matching the total for the entire previous decade. According to BlackRock’s Spring Wealth Investment Directions guide, the average EMEA portfolio is now 18% overweight in European equities relative to the MSCI ACWI index. BlackRock’s strategists recommend favouring high-quality leading companies, particularly those with strong domestic revenues, to gain exposure to a more resilient European economy.

Vincent Denoiseux, Head of Product Research and Innovation at iShares EMEA, said: “BlackRock is expanding access for clients, enabling investors to better express their views in an increasingly fragmented global landscape. In an increasingly granular macroeconomic environment, the tools available must evolve beyond traditional country classifications. Revenue-based approaches offer a clearer view of where returns are generated and where risks are concentrated, enabling more precise portfolio diversification.”

Denoiseux joined BlackRock in 2025 following a long career at Amundi, where he worked for over twenty years in quantitative research and derivatives.

Fund composition

The press release details the main sectoral and geographical exposures:

• iShares Europe Domestic Focus UCITS ETF (EURP): 78% domestic exposure (Europe). The three main sectors are Banks (27.6%), Utilities (13.0%) and Energy (8.9%). The main country exposures are France (19.6%), the United Kingdom (15.6%), Italy (12.5%), Germany (12.3%) and Spain (9.5%).
• iShares Europe Foreign Focus UCITS ETF (EUFG): 26% domestic exposure (Europe). The main sectors are Healthcare (19.2%), Industrial Goods & Services (18.5%) and Technology (11.0%). Country exposures include the UK (28.1%), Switzerland (18.8%), Germany (13.8%), France (13.6%) and the Netherlands (9.1%).
• iShares UK Domestic Focus UCITS ETF (KDOM): 84% domestic exposure (UK). The main sectors are Banking (30.9%), Utilities (12.8%) and Insurance (11.0%).
• iShares UK Foreign Focus UCITS ETF (KFOR): 28% domestic exposure (United Kingdom). The main sectors are Healthcare (17.3%), Industrial Goods & Services (15.3%) and Energy (14.4%).

The funds are registered in Austria, Denmark, Finland, France, Germany, Italy, Luxembourg, the Netherlands, Norway, Spain, Sweden, Ireland and the United Kingdom.

BlackRock manages over €1.9 trillion in European assets on behalf of global clients. The iShares platform comprises over 1,700 ETFs and approximately $5.5 trillion in assets under management as at 31 March 2026.