What Is iShares?
Let me tell you about iShares: it's a global leader in exchange-traded funds, or ETFs, with over $2 trillion invested in more than 800 different products that span a wide range of asset classes and investment strategies. As a subsidiary of BlackRock, the world's largest asset management company, iShares relies on BlackRock to issue and market its products.
I should note that iShares was founded in 2000, with its initial listings on major exchanges like NYSE Euronext, the Chicago Board Options Exchange, Nasdaq, and NYSE Arca.
Key Takeaways
Here's what you need to know: iShares stands as one of the world's largest and most recognized ETF providers, with over 800 products available globally. Since its start in 2000, it now oversees more than $2 trillion in ETF assets. Remember, it's fully owned by BlackRock.
The Basics of iShares
When I look at iShares ETFs, I see them as a flexible, low-cost option for you to access different market segments, from fixed income to emerging markets and broad indexes. Take the iShares Core S&P 500 ETF (IVV), which tracks the S&P 500 Index, or the iShares MSCI Emerging Markets ETF (EEM), which follows over 800 large and mid-cap companies in developing countries.
These ETFs combine low fees with tax efficiency by aiming to match an index, which can help you build greater long-term savings compared to mutual funds. They focus on matching benchmark performance, leading to less frequent turnover and lower fees, without sacrificing results—in fact, iShares Core ETFs outperformed more than 76% of their peers on average from 2015 to 2020.
You'll find iShares funds listed on almost all major global marketplaces, including the London Stock Exchange, Hong Kong Stock Exchange, and Toronto Stock Exchange. At any point, iShares and Vanguard make up more than 50% of the entire ETF market.
Examples of iShares ETFs
For U.S. investors, iShares provides 394 ETFs covering commodities, equities, fixed income, multi-assets, and real estate. You can target developing, emerging, or frontier markets; specific regions or countries; industry sectors; megatrends like climate change, demographic shifts, and tech breakthroughs; thematic areas such as ESG criteria; and other selection methods.
Popular iShares Products
- iShares Core S&P 500 ETF (IVV): This tracks the S&P 500 Index and held about $286 billion in assets as of June 2021, with an expense ratio of 0.03% and annual returns of 7.27% since May 2000, close to its benchmark's 7.33%.
- iShares MSCI EAFE ETF (EFA): It gives access to over 900 stocks from companies in Europe, Australia, Asia, and the Far East, holding around $56.8 billion in assets as of June 2021, with a 0.32% expense ratio and 5.84% annual returns since August 2001.
- iShares Core US Aggregate Bond ETF (AGG): This offers broad exposure to U.S. investment-grade bonds, with about $88.8 billion in assets as of June 2021, a 0.04% expense ratio, and 4.02% annual returns since September 2003.
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