BlackRock Canada Launches the iShares MSCI Europe IMI Index ETF
(XEU) and the iShares MSCI Europe IMI Index ETF (CAD-Hedged) (XEH)
Offering Diversified Exposure to European Equities
New iShares Funds With Exposure to European Equities Complement
Launch of iShares Core Series; Makes "Core and
Explore" Allocation Strategies More Efficient for Canadian
Investors
TORONTO, ONTARIO--(Marketwired - Apr 23, 2014) - iShares, the
industry-leading exchange-traded fund (ETF) business at BlackRock
Asset Management Canada Limited (BlackRock Canada)
(TSX:XEU)(TSX:XEH), an indirect, wholly-owned subsidiary of
BlackRock, Inc. (BlackRock), announced the launch of two iShares
funds to access European exposure while, in the case of XEH,
hedging exposure to foreign currencies. The iShares MSCI Europe IMI
Index ETF seeks to track the MSCI Europe IMI while the iShares MSCI
Europe IMI Index ETF (CAD-Hedged) seeks to track the MSCI Europe
IMI 100% Hedged to CAD Index. Both indices capture large, mid and
small-cap representation across the developed countries in Europe,
and include 1,315 constituent equities (as of January 31, 2014).
XEH's index is hedged back to Canadian dollars. The new funds'
management fees are 0.25% and were launched under the tickers
(TSX:XEU) and (TSX:XEH), respectively. XEU began trading on April
22nd and XEH is expected to begin trading on April 24th.
"Canadian investors are increasingly using iShares funds to
express their views, and our new options for Europe provide
low-cost access to equity exposure outside of North America," said
Mary Anne Wiley, Managing Director, Head of iShares Canada. "We
believe investors should focus on areas of relative value like
markets in Europe as diversifiers to their asset allocation
strategy."
Make Europe Part of Your Plans: European Fundamentals Attractive
Relative to Canada and the U.S.
Diversification beyond North America is one of the key themes
BlackRock has identified as vital to investors for 2014. With
Canadian and U.S. equity markets on track for modest growth this
year, investors should consider looking beyond the familiar as they
seek opportunities to grow their portfolios. European developed
markets offer equity prices that look reasonably valued compared to
North American equities, and dividend yields are an attractive
growth opportunity for Canadian investors. The MSCI Europe IMI's
current price-to-equity ratio (P/E) stands at 17.71, compared with
a P/E of 19.9 for the MSCI USA IMI and 20.7 for the MSCI Canada
IMI. Meanwhile, dividend yield for the MSCI Europe IMI stands at
3.09%, compared with 1.91% and 2.87% for the U.S. and Canada MSCI
indexes, respectively.1
While providing exposure to growth outside of North America, XEU
and XEH offer significant diversification opportunities to Canadian
investors who may be heavily weighted in domestic equities. The
Canadian stock market is highly concentrated in three sectors:
financials, energy and materials. By contrast, the MSCI Europe IMI
covers key economic sectors that are underweighted in Canadian
indexes, including industrials (e.g. Siemens AG, Airbus Group N.V.
and Rolls-Royce Holdings PLC), healthcare (e.g. Roche Holding AG,
Novartis AG, GlaxoSmithKline PLC) and consumer discretionary (e.g.
BMW AG, Daimler AG). The iShares funds track indexes that cover
approximately 99% of free float-adjusted market capitalization
across European developed-market countries, allowing investors to
explore ex-North America growth, and mitigate cyclical and economic
risk through geographic and sector diversification.
As the ETF market leader, with a 15-year history in ETFs in
Canada and over $43 billion in assets under management, iShares
Canada is committed to serving the evolving needs of investors.
Earlier this year, the iShares Core Series for Canadian
investors was launched - a suite of nine low-cost funds that cover
key assets classes used by Canadian investors in their portfolios
today (domestic equities, dividends and bonds, as well as U.S. and
international equities) to form the core of their ETF portfolios.
At BlackRock, we believe investors should strengthen the core of
their portfolios with low-cost, efficient products such as the
iShares Core Series and complement their asset allocation
strategies with outcome-based solutions designed to address more
specific needs, from earning income in retirement to capitalizing
on short-term market opportunities. As the first funds to be
launched following the iShares Core Series debut, XEU and
XEH provide a new way to complement core holdings, by offering
diversified, outcome-based exposure to an important international
market.
"Investors now have greater flexibility to complement the core
of their portfolio with the diversification they need," adds
Wiley.
1. Source: MSCI Inc., as of 03/31/14.
About BlackRock
BlackRock is a leader in investment management, risk management
and advisory services for institutional and retail clients
worldwide. At March 31, 2014, BlackRock's AUM was US$4.401
trillion. BlackRock helps clients meet their goals and overcome
challenges with a range of products that include separate accounts,
mutual funds, iShares® (exchange-traded funds), and other pooled
investment vehicles. BlackRock also offers risk management,
advisory and enterprise investment system services to a broad base
of institutional investors through BlackRock Solutions®.
Headquartered in New York City, as of March 31, 2014, the firm had
approximately 11,500 employees in more than 30 countries and a
major presence in key global markets, including North and South
America, Europe, Asia, Australia and the Middle East and Africa.
For additional information, please visit the Company's website at
www.blackrock.com.
About iShares ETFs
The iShares business is a global product leader in exchange
traded funds with over 600 funds globally across equities, fixed
income and commodities, which trade on 20 exchanges worldwide. The
iShares funds are bought and sold like common stocks on securities
exchanges. The iShares funds are attractive to many individual and
institutional investors and financial intermediaries because of
their relative low cost, tax efficiency and trading flexibility.
Investors can purchase and sell securities through any brokerage
firm, financial advisor, or online broker, and hold the funds in
any type of brokerage account. The iShares customer base consists
of the institutional segment of pension plans and fund managers, as
well as the retail segment of financial advisors and individual
investors.
iShares Funds are managed by BlackRock Asset Management Canada
Limited. Commissions, trailing commissions, management fees and
expenses all may be associated with investing in iShares Funds.
Please read the relevant prospectus before investing. The funds are
not guaranteed, their values change frequently and past performance
may not be repeated. Tax, investment and all other decisions should
be made, as appropriate, only with guidance from a qualified
professional.
© 2014 BlackRock Asset Management Canada Limited. All rights
reserved. iSHARES® and BLACKROCK® are registered trademarks of
BlackRock, Inc., or its subsidiaries in the United States and
elsewhere. Used with permission.
Contact for Media:Maeve
Hannigan416-643-4058Maeve.Hannigan@blackrock.comwww.blackrock.com
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