BlackRock Launches Two New ETF Funds

Robbie Lawther

10 July 2017

has launched two equity income exchange traded funds, offering investors access to companies that generate consistent dividends.

The iShares MSCI World Quality Dividend UCITS ETF (WQDV) and the iShares MSCI Europe Quality Dividend UCITS ETF (EQDV) will provide exposure to companies that exhibit strong income generation potential, relative to the broader market, the firm said in a statement.

The indices screen companies to only include those institutions that have a 30 per cent higher dividend yield than the parent universe of potential investible businesses. Securities will be then screened according to their earnings quality and to ensure that the dividends they pay are both sustainable and persistent over time.

The funds will complement the existing iShares MSCI USA Quality Dividend UCITS ETF (QDIV), and brings the range of iShares Dividend ETFs to 14.

“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,” said Manuela Sperandeo, Head of iShares specialist sales for EMEA. “In this environment, it can make sense to look for investments that aim to provide a steady stream of income.”

Sperandeo added: “Our range of quality dividend ETFs provide investors with access to financially robust companies with high and sustainable dividends. These funds provide investors with access to long-standing active management insights within an index investing framework, while their low expense ratios and diversification traits make them an attractive proposition for the backbone of an equity portfolio."