BlackRock has expanded its equity income ETF range with two new funds offering investors access to companies with solid dividends.
The new funds provide exposure to companies that exhibit strong income generation potential, relative to the broader market. The underlying indices of the funds screen to include only companies that have a 30 per cent higher dividend yield than the parent universe. Securities are then screened according to their earnings quality and to ensure that the dividends they pay are both sustainable and persistent over time.
The two new funds complement the existing iShares MSCI USA Quality Dividend UCITS ETF (QDIV), and brings the range of iShares Dividend ETFs to 14, the largest available to European investors. Through these funds, investors can express a global view as well as tilt their income portfolios to the desired regional exposures.
The range consists of:
FundExposure*New* iShares MSCI World Quality Dividend UCITS ETF (WQDV)World developed high quality companies that exhibit strong income generation potential relative to the broader global market*New* iShares MSCI Europe Quality Dividend UCITS ETF (EQDV)European high quality companies that exhibit stronger income generation potential than the broader European market.iShares MSCI USA Quality Dividend UCITS ETF (QDIV)US high quality companies that exhibit the strongest income generation potential than the broader US market.
Manuela Sperandeo, Head of iShares specialist sales for EMEA at BlackRock, commented: "Despite a return to monetary policy normalisation in the US, rates look set to remain low compared to historic levels both in the US and Europe. In this environment, it can make sense to look for investments that aim to provide a steady stream of income."
The funds are physically-replicating, meaning they hold the underlying securities of the index. The funds carry a total expense ratio of 0.28% for the European exposure and 0.38% for the World exposure.