Three iShares Core U.S. equity exchange traded funds (ETFs) now sport track records longer than two decades. Launched in 2000, the iShares Core S&P 500 ETF (NYSE: IVV), the iShares Core S&P Mid-Cap ETF (NYSE: IJH), and the iShares Core S&P Small-Cap ETF (NYSE: IJR) reflect performance that spans multiple market cycles and includes the dot-com bubble of the early 2000s, the global financial crisis of 2008-09, the longest bull market in the history of U.S. stocks, and unprecedented volatility in 2020. Together, these funds have accumulated $270 billion in client assets to become the flagship U.S. equity exposures within our industry-leading $551 billion iShares Core ETF franchise.1
“The launch of these flagship funds 20 years ago laid the foundation for our successful Core franchise, which offers all types of investors a formidable combination of performance, value and versatility,” said Armando Senra, Head of Americas iShares at BlackRock. “Not all index funds are created equal. Our clients benefit from quality index providers and precision exposures, all of which are underpinned by the full breadth of BlackRock’s investment management expertise and Aladdin, our technology and risk management platform. This combination creates an exceptional offering for clients today, tomorrow and for years to come.”
Being the market can beat the market
Strong performance of the three Core U.S. equity strategies since inception demonstrates why index investing, which was not yet mainstream when these funds came to market, is now recognized as an essential long-term strategy.
According to Standard & Poor’s S&P Indices Versus Active (SPIVA) research, each index that our Core U.S. equity ETFs seeks to track (large-, mid- and small-cap) outperformed the average actively managed peer fund over the past 20 years. As of April 30, 2020, for example, the S&P 500 index outperformed more than 89% of all large-cap U.S. actively managed mutual funds. A similar story has played out in the domestic mid-cap and small-cap markets, where S&P’s indexes outperformed 92% and 88% of actively managed funds, respectively.2
Providing more value to investors through lower expenses
iShares Core ETFs provide investors convenient tools for building resilient, long-term portfolios at low cost. Buy-and-hold self-directed investors, enterprising RIAs, and pension fund managers alike rely on Core exposures to help meet their goals, and the goals of their own clients.
To help commemorate the 20-year anniversary of our flagship Core ETFs, and consistent with our long-term pricing strategy, iShares will reduce expenses on IVV, IJH and IJR.
This action underscores our longstanding commitment to delivering value. Since 2012, iShares has saved clients more than $600 million through management fee reductions on its U.S. ETF line-up3. Historically, fee reductions have accelerated iShares’ growth and the adoption of its ETFs.
iShares Core S&P 500 ETF
iShares Core S&P Mid-Cap ETF
iShares Core S&P Small-Cap ETF
Institutional iShares users benefit from versatility
iShares ETF investors can also count on a world-class capital markets coverage, unmatched education, tools, and an ecosystem of market participants that support institutional users.
The different ways asset owners, asset managers and professional investors leverage IVV’s combination of value and liquidity illustrate the versatility of iShares ETFs. Across its range of funds, clients turn to iShares to help them quickly transfer risk, reposition portfolios, or implement hedges. ETFs like IVV can also serve as alternatives to futures, acting as both a trading and allocation tool thanks to an optimal combination of liquidity and value.
Growth of the ETF industry has encouraged a robust, dynamic ecosystem comprised of market participants including authorized participants (AP), which are key to ETF operations. IVV, IJH and IJR have the support of more APs than peer ETFs, helping ensure that prices are accurate, and trading is smooth, in all market conditions.4
“iShares Core ETF have democratized investing for millions of Americans,” Senra said. “Though fees are critical to long-term performance, they are just part of what iShares can offer clients: our key attributes—performance, value and versatility—will continue to differentiate iShares and enable us to serve every type of client, from do-it-yourself self-directed investors, portfolio model builders, to sophisticated institutions.”
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 www.iShares.com or www.blackrock.com. Read the prospectus carefully before investing.
Investing involves risk, including possible loss of principal. Past performance does not guarantee future results.
Small- and mid-capitalization companies may be less stable and more susceptible to adverse developments, and their securities may be more volatile and less liquid than larger capitalization companies.
There can be no assurance that an active trading market for shares of an ETF will develop or be maintained. Transactions in shares of ETFs may result in brokerage commissions and will generate tax consequences. All regulated investment companies are obliged to distribute portfolio gains to shareholders.
Shares of iShares ETFs may be bought and sold throughout the day on the exchange through any brokerage account. Shares are not individually redeemable from the ETF, however, shares may be redeemed directly from an ETF by Authorized Participants, in very large creation/redemption units. Although market makers will generally take advantage of differences between the NAV and the trading price of iShares ETF shares through arbitrage opportunities, there is no guarantee that they will do so.
The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).
The iShares Funds are not sponsored, endorsed, issued, sold or promoted by S&P Dow Jones Indices LLC, nor does this company make any representation regarding the advisability of investing in the Funds. BlackRock is not affiliated with S&P Dow Jones Indices LLC.
©2020 BlackRock, Inc. iSHARES and BLACKROCK are trademarks of BlackRock, Inc., or its subsidiaries in the United States and elsewhere. All other marks are the property of their respective owners.
BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, our clients turn to us for the solutions they need when planning for their most important goals. As of March 31, 2020, the firm managed approximately $6.47 trillion in assets on behalf of investors worldwide. For additional information on BlackRock, please visit www.blackrock.com/corporate | Twitter: @blackrock | Blog: www.blackrockblog.com | LinkedIn: www.linkedin.com/company/blackrock.
iShares unlocks opportunity across markets to meet the evolving needs of investors. With more than 20 years of experience, a global line-up of 900+ exchange traded funds (ETFs) and $1.85 trillion in assets under management as of March 31, 2020, iShares continues to drive progress for the financial industry. iShares funds are powered by the expert portfolio and risk management of BlackRock, trusted to manage more money than any other investment firm5.
1 As of May 29, 2020
2 Source: S&P Dow Jones Indices, May 1, 2000 - April 30, 2020. Past performance does not guarantee future results. Comparison universe is the indicated S&P Index and mutual funds in each identified category in the U.S. For more information on SPIVA rankings, see https://us.spindices.com/spiva/#/. Index performance is for illustrative purposes only. Index performance does not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Index performance does not represent actual iShares Fund performance and actual performance may be lower than index performance. For actual fund performance, please visit www.iShares.com or www.blackrock.com.
3 Source: BlackRock based on the cumulative impact of fee reductions from 2012-2019.
4 Source: BlackRock, Form N-CEN. Retrieved from SEC EDGAR database
https://www.sec.gov/edgar/searchedgar/webusers.htm. As of 03/27/2020.
5Based on $6.47 trillion in AUM as of 3/31/20
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