BlackRock has listed three new iShares ETFs on the ASX that the asset manager claims will provide investors with low-cost and well-diversified investment options.
Launched in collaboration with NAB Private Wealth, the new suite of ETFs includes the iShares Balanced ESG ETF (IBAL), the iShares High Growth ESG ETF (IGRO) and the iShares Future Tech Innovators ETF (ITEK), all of which commenced trading on Wednesday.
According to BlackRock, IBAL and IGRO seek to provide core exposure to a globally diversified sustainable multi-asset portfolio based on balanced or growth risk considerations.
The firm explained that the portfolios will use iShares screened and sustainable building blocks where available and will aim to hold targeted exposures to companies with favourable ESG characteristics relative to their sector peers within the broader market.
Head of iShares and index investments at BlackRock Australasia, Jason Collins, said that the funds were tailored to meeting long-term financial and sustainable investment goals.
“Based on our shared experience with NAB Private Wealth, ESG considerations are a key priority for Australian investors as they seek to build resilience into their portfolios by gaining exposure to sustainability-related opportunities over the long term,” he said.
“Additionally, the rise of millennials and new self-directed investors have given rise to megatrend investing as they seek to take advantage of the transformative growth trends that will reshape how we live and work in the future.”
BlackRock stated that both ESG-focused ETFs were priced competitively with a management fee of 22 basis points. The long-term strategic asset allocation of the funds will be set and reviewed by BlackRock’s multi-asset strategy and solutions (MASS) team.
Meanwhile, ITEK has been described as the first ETF of its kind in the Australian market and is made up of an evenly weighted portfolio of six complementary iShares thematic ETFs.
The fund is said to offer a well-diversified exposure to global technological innovation trends such as electric vehicles and driving technology, healthcare, robotics and automation, digitalisation, clean energy and smart city infrastructure.
According to insights gathered from NAB clients, there is high demand for “simple, low-cost, holistic” options that can be used to build a globally diversified portfolio of stocks and bonds.
Furthermore, NAB clients indicated their desire to gain exposure to megatrends including sustainability and tech innovation that may be too complex or costly to access otherwise.
“Investors are increasingly looking to the convenience of ETFs to take the necessary steps to meet their long-term financial and sustainable investment goals in the context of their whole portfolio,” said BlackRock Australasia head of wealth, Chantal Giles.
“The fact that anyone can access these opportunities, and the underlying transformative trends via an ETF, represents how far we’ve come in making investing simpler, efficient and more affordable for everyone.”
As indicated last month, a dedicated ETF Centre has been launched by nab trade featuring ETF-related educational content to help investors looking for better value and guidance.
Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.