BlackRock's Canadian segment announced the launch of a suite of minimum volatility exchange traded funds for that nation's marketplace, a move the firm says is designed to help investors capture a shaky market's potential upside, while simultaneously protecting their assets.
The asset manager said the new offering is an expansion of its iShares business to Canada, an offering that includes a lineup of market-cap and fundamentally-weighted broad market products. It noted that the new iShares Minimum Volatility Funds will help investors reduce their overall portfolio risk while retaining their exposure to the equity markets.
"To help investors get off the sidelines, we have introduced the new iShares Minimum Volatility Funds which offer investors a unique opportunity to retain equity exposure in their portfolio while seeking to reduce the overall equity risk in these turbulent times," said Mary Ann Wiley, the head of BlackRock Canada's iShares segment. "It's a compelling option for investors looking for a contrast or complement to other portfolio management strategies and will also optimize risk-adjusted returns over the long-term."
The launch also comes in response to investor demand for such products, BlackRock Canada said. The asset manager added that while the typical market portfolio looks to balance risk by including exposures to higher and lower risk equities, minimum volatility ETFs aim to provide steady gains that help insulate investors against performance spikes.
All five of the iShares ETFs are now trading on the Toronto Stock Exchange, BlackRock Canada said.