What You Need to Know
- iShares BlackRock’s has launched the iShares International Developed Small Cap Value Factor ETF (ISVL).
- Schwab plans to introduce an International Dividend Equity ETF (SCHY) on or around April 29.
- John Hancock will liquidate its Alternative Risk Premium fund on May 10.
BlackRock’s iShares has launched the iShares International Developed Small Cap Value Factor ETF (ISVL), which tracks the FTSE Developed ex-US ex Korea Small Cap Focused Value Index.
The ETF, which has a net expense ratio of 0.30%, is intended to take advantage of the rally in value stocks, both domestically and internationally, which began in November 2020 after Pfizer and partner BioNTech SE became the first companies to announce the development of a highly effective coronavirus vaccination.
ISVL complements iShares International Developed Small Cap Value Factor ETF (ISVL) introduced in October 2020 and is supported by growing investor interest in international markets, according to BlackRock. iShares saw about $1.7 billion in its international single factor suite in 2020, a 70% increase from 2019, according to BlackRock.
Bob Hum, U.S. head of factor ETFs at iShares, said in a statement that ISVL was “the first iShares ETF to specifically target small cap value exposure in international markets” and can “can meet the growing demand for pro-cyclical exposure that can potentially benefit from a reopening of the economy post-COVID 19.”
Schwab Plans Low-Cost International Dividend ETF
Charles Schwab Investment Management (CSIM) expects to launch the low-cost Schwab International Dividend Equity ETF (SCHY) on or around April 29.
The ETF will track the Dow Jones International Dividend 100 Index and have an operating expense ratio of 0.14%, among the lowest cost of any similar product from other asset managers. (The Vanguard International High Dividend Yield Index ETF, based on the FTSE All-World ex U.S. High Dividend Yield Index, has a net expense ratio of 0.28%.)
“We continue to see a spike in demand for dividend equity funds,” said David Botset, senior vice president of product strategy for CSIM, in a statement. He noted that the 10,000 baby boomers turning 65 every day, as well as other investors, are seeking income strategies as part of diversified portfolios.
John Hancock to Liquidate Alternatives Fund
John Hancock will be liquidating the John Hancock Alternative Risk Premium fund on May 10. It closed the fund to new investorsThursday.
According to an SEC filing, the fund’s board “determined that continuation of the fund is not in the best interests of the fund or its shareholders as a result of factors or events adversely affecting the fund’s ability to conduct its business and operations in an economically viable manner.”
The actively managed fund, launched in December 2019 had accumulated $124.34 million in assets as of March 25. It was designed to hold both long and short positions within a variety of asset classes globally including equities, bonds, foreign currencies and commodities as well as ETFs.
SoFi to Offer Members Access to IPOs
Digital advisory firm SoFi, which has been rapidly expanding into new services and has plans to go public via a SPAC, has said it will be offering users on its SoFi Invest platform the ability to invest in initial public offerings (IPOs), which have traditionally been limited to large institutional investors and ultra-high net worth individuals.
The SoFi offering will be available to SoFi Active Invest users who have at least $3,000 in total account value across all of SoFi Invest accounts.