iShares has launched a range of volatility and hedged Ireland-domiciled exchange-traded funds.
The iShares S&P 500 Monthly CHF Hedged, iShares MSCI Japan Monthly CHF Hedged, iShares MSCI World Monthly CHF Hedged, iShares MSCI World Minimum Volatility, iShares MSCI Emerging Markets Minimum Volatility, iShares MSCI Europe Minimum Volatility and iShares S&P 500 Minimum Volatility launched today on December 3.
Volatility exchange-traded funds work by investing on the least volatile constituents of a particular index.
The total expense ratio on the Europe minimum volatility ETF is 0.25 per cent, the World minimum volatility ETF is 0.3 per cent, S&P minimum volatility ETF is 0.2 per cent, Emerging Markets minimum volatility ETF is 0.4 per cent. All the ETFs are denominated in US dollars, apart from Europe one which is denominated in euros.
The hedged ETFs invest in physical index securities and build in currency hedging on a monthly basis with the aim of reducing the impact of exchange rate fluctuations between the swiss franc and the currency of the constituent securities in the index.
The total expense ratio on the S&P 500 Monthly CHF Hedged fund is 0.45 per cent, the World Monthly CHF Hedged fund is 0.55 per cent and Japan Monthly CHF Hedged fund is 0.64 per cent.