iShares iBonds Dec 2035 Term Corp - EUR · XETR:35AI
iShares iBonds Dec 2035 Term Corp - EUR — iShares — Investor Presentation (October 2019)
33 slides from iShares iBonds Dec 2035 Term Corp - EUR's investor presentation, October 2019
Slide 1: Factor Investing by iShares
Factor Investing by iShares Smart Beta strategies for the core of your portfolio MKTGM1019U-971493-1/33
Slide 2: Factor investing: ways to get started
Factor investing Ways to get started Factor Minimum Single Multifactor investing Volatility Factors Pursue differentiated Reduce volatility Seek outperformance Seek outperformance outcomes “The New Style Box” Keep your clients invested Total Market Core Why factors? MKTGM1019U-971493-2/33
Slide 3: Active funds are under pressure
FACTOR INVESTING Active funds are under pressure Underperformance. High fees. Capital gains distributions. Investors are looking for a better way to construct portfolios that will give them competitive performance, while keeping costs low and providing tax efficiency. Active equity mutual funds 87%
Slide 4: Data and technology are changing everything, including investing
FACTOR INVESTING Data and technology are changing everything, including investing Innovators transform When we need a better way, data into insights we innovate through technology 1 billion hours ago, humanity emerged 1 billion seconds ago, IBM released first PC Google Apple 1 billion Google searche
Slide 5: Kayak: disrupting the travel industry
FACTOR INVESTING Kayak: disrupting the travel industry Travel agents depended on proprietary access to systems and information. The Web put that once exclusive technology into the hands of everyone – and now there are 44% fewer travel agents.1 53,554 U.S. hotels 2 Proprietary technology Price Propri
Slide 6: Factors ETFs: low cost access for all
FACTOR INVESTING Factors ETFs: low cost access for all In the same way that Kayak.com provides access to the best hotel screens, factor investing provides everyday investors with security screens that active managers have used for generations… but at a fraction of the cost. Value Quality Momen
Slide 7: What are factors and why have they worked?
FACTOR INVESTING What are factors and why have they worked? iShares Factor ETFs employ the same intuitive screens used by active managers for generations, but offer the low cost and tax efficiency of traditional ETFs. Factor Objective Screens Usage • Price/forward earnings Invests in stocks that are
Slide 8: How do you build portfolios?
FACTOR INVESTING How do you build portfolios? Morningstar category Large Value Large Blend Large Growth Market cap weighted Value Blend Growth IUSV IVV IUSG SEEK MARKET 0.04% 0.04% 0.04% Large RETURNS Mid Smart beta Small VLUE QUAL MTUM SEEK 0.15% 0.15% 0.15% OUTPERFORMANCE The new style box Moderni
Slide 9: How do you build portfolios?
FACTOR INVESTING How do you build portfolios? Morningstar category U.S. Int’l EM Market cap weighted ITOT IEFA IEMG SEEK MARKET 0.03% 0.07% 0.14% RETURNS Large Value Foreign Large Blend Diversified EM Smart beta Expand your horizons SEEK LRGF INTF EMGF OUTPERFORMANCE 0.20% 0.30% 0.45% Use factors ar
Slide 10: Factor investing
Factor investing Ways to get started Factor Minimum Single Multifactor investing Volatility Factors Pursue differentiated Reduce volatility Seek outperformance Seek outperformance outcomes “The New Style Box” Keep your clients invested Total Market Core Why factors? MKTGM1019U-971493-10/33
Slide 11: Why minimum volatility makes sense
MINIMUM VOLATILITY – KEEP YOUR CLIENTS INVESTED Why minimum volatility makes sense Behavioral reasons Math reasons** Volatility can drive poor decision making Losing less can lead to winning more Annualized returns (1996-2015)* $100 $100 8.2% 7.2% +5% 5.3% +20% $80 2.1% -20% US Stocks 60/40 US Bonds
Slide 12: Keep your clients invested
MINIMUM VOLATILITY – KEEP YOUR CLIENTS INVESTED Keep your clients invested 2018: did your clients stay invested? 2018 total return 2018 returns for the S&P500 Index -$39B 1.36% equity outflows USMV Q1 2019 rally. Did you participate? -$85B -4.38% equity outflows Jan 1st Dec 31st 2018 2018 S&P 500 So
Slide 13: Losing less can lead to winning more
MINIMUM VOLATILITY – KEEP YOUR CLIENTS INVESTED Losing less can lead to winning more Asymmetric upside/downside capture can lead to a better outcome. Growth of a hypothetical $100k in the S&P 500 Index over the last two bear and bull markets Scenario S&P 500 Index (100% upside/100% downside) Upsid
Slide 14: Market-like returns with less risk
MINIMUM VOLATILITY – KEEP YOUR CLIENTS INVESTED Market-like returns with less risk Upside/downside capture Annualized risk/return Since November 2011 inception Since November 2011 inception USMV EFAV EEMV 16% United States Intl developed Emerging markets USMV S&P 500 12% Upside 81% 75% 77% Return ca
Slide 15: Market-like returns with less risk
MINIMUM VOLATILITY – KEEP YOUR CLIENTS INVESTED Market-like returns with less risk USMV iShares Edge MSCI How do other funds compare? Min Vol USA ETF 1,660 U.S. equity mutual funds Upside Capture 81 3 have downside % capture <54% vs. the S&P 500 Downside 54 Capture % 0 None of those 3 mutual funds h
Slide 16: Sector constrained – so you can use it in the core of your portfolio
MINIMUM VOLATILITY – KEEP YOUR CLIENTS INVESTED Sector constrained – so you can use it in the core of your portfolio 0.86 Correlation to the S&P 500 Broad market sectors +/- 5% USMV 0.68 Beta to the S&P 500 Sector-constrained vs. the MSCI USA Index -5% Index sector weight +5% Large IT Index methodol
Slide 17: Factor investing
Factor investing Ways to get started Factor Minimum Single Multifactor investing Volatility Factors Pursue differentiated Reduce volatility Seek outperformance Seek outperformance outcomes “The New Style Box” Keep your clients invested Total Market Core Why factors? MKTGM1019U-971493-17/33
Slide 18: Factors are cyclical
Factors are cyclical Factors perform differently depending on the stage in the economic cycle, and ultimately allow investors to express a view on the market. The four stages of an economic cycle Recovery Expansion Slowdown Contraction Value stocks are pro-cyclical and have historically Quality perf
Slide 19: A new value for your style box
SINGLE FACTORS iShares Edge MSCI USA Value A new value for your style box Factor ETF VLUE invests in stocks that are inexpensive relative to fundamentals. VLUE Factor Screens Price/forward earnings Price/book Enterprise value/cash flow Value Competitive performance VLUE vs. Morningstar competitor mu
Slide 20: A new blend for your style box
SINGLE FACTORS iShares Edge MSCI USA Quality A new blend for your style box Factor ETF QUAL invests in companies with healthy balance sheets. QUAL Factor Screens Return on equity Earnings consistency Debt to equity Quality Competitive performance QUAL vs. Morningstar competitor mutual funds4 Outperf
Slide 21: A new growth for your style box
SINGLE FACTORS iShares Edge MSCI USA A new growth for your style box Momentum Factor ETF MTUM invests in stocks on an upswing. MTUM Factor Screens Risk adjusted momentum Momentum Competitive performance MTUM vs. Morningstar competitor mutual funds4 Outperformed 93% of its peers on a 5 year basis1 (7
Slide 22: Factor investing
Factor investing Ways to get started Factor Minimum Single Multifactor investing Volatility Factors Pursue differentiated Reduce volatility Seek outperformance Seek outperformance outcomes “The New Style Box” Keep your clients invested Total Market Core Why factors? MKTGM1019U-971493-22/33
Slide 23: Combining factors can reduce volatility of returns
MULTIFACTOR Combining factors can reduce volatility of returns Single factor strategies have low historical correlation, so combining them within Multifactor ETFs can deliver greater consistency of returns. U.S. factors calendar year fund returns (%) Annual return 2014 2015 2016 2017 2018 Q1 2019 20
Slide 24: iShares Multifactor ETFs
MULTIFACTOR iShares Multifactor ETFs Multifactor strategies seek to invest in companies with multiple attractive characteristics. The funds employ sector and security constraints so you can use them in the core of your portfolio. Companies with healthy balance sheets General Electric Quality Citigro
Slide 25: A new core for your U.S. exposure
MULTIFACTOR A new core for your iShares Edge MSCI Multifactor USA ETF U.S. exposure LRGF LRGF is a U.S. large cap core portfolio — for investors seeking the potential for outperformance vs. the broad market. Value Quality Momentum Size Competitive performance LRGF vs. Morningstar competitor
Slide 26: A new core for your Int'l exposure
MULTIFACTOR A new core for your iShares Edge MSCI Multifactor Intl ETF Int’l exposure INTF INTF is an international core allocation— for investors seeking the potential for outperformance with the low cost and tax efficiency of traditional ETFs. Value Quality Momentum Size Competitive perfor
Slide 27: A new core for your EM exposure
MULTIFACTOR A new core for your iShares Edge MSCI Multifactor Markets ETF EM exposure EMGF EMGF is an emerging market core allocation for investors seeking the potential for outperformance with the low cost and tax efficiency of traditional ETFs. Value Quality Momentum Size Competitive perfo
Slide 28: BlackRock's factor platform
BlackRock’s factor platform Seek your desired outcome with our full suite of alpha and index factor strategies. U.S. INT’L U.S. INT’L MTUM VLUE IMTM IVLU LRGF SMLF INTF EMGF Single Multifactor factor QUAL SIZE IQLT ISZE ACWF Minimum U.S. INT’L U.S. INT’L Dividends volatility USMV EFAV EEMV ACWV DGRO
Slide 29: A Factor Approach to Fixed Income
A Factor Approach to Fixed Income Just like equities, factors have been a major driver of returns in fixed income. A factor approach to core bond investing can help seek outperformance with an improved risk/return profile compared to both index and active strategies. Balanced Risk Process Balance Ra
Slide 30: Appendix: ETFs and traditional mutual funds-know the differences
Appendix: ETFs and traditional mutual funds-know the differences Criteria Mutual funds ETFs Management Active Passive Performance goal Outperform a benchmark and/or deliver outcome Track a benchmark Buying / selling shares Once per day via fund company Intraday on exchanges Price to buy / sell End-o
Slide 31: Appendix: Standardized performance as of 06/30/19
Appendix: Standardized performance as of 06/30/19 Fund Gross 1-Year Returns 5-Year Returns 10-Year Returns Since Inception Fund Name Inception Expense Date Ratio NAV Mkt Price NAV Mkt Price NAV Mkt Price NAV Mkt Price iShares Edge MSCI USA Quality Factor ETF (QUAL) 7/16/2013 0.15% 11.74% 11.66% 11.4
Slide 32: Important information on Morningstar Rankings
Important information on Morningstar Rankings Source: Morningstar, as of 6/30/19. Comparison universe is ETFs and mutual funds in the respective Morningstar Categories. Rankings based on total return. In reference to slide 11: VLUE outperformed 11% of its peers on a 1 year basis, ranked against 1,22
Slide 33: Important information regarding iShares ETFs
Important information regarding iShares ETFs Carefully consider the Funds' investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds' prospectuses or, if available, the summary prospectuses which may be obtained by visiting w