BlackRock ETF With $8 Billion in Outflows Gets an ESG Twin
- USMV has seen more outflows than any equity ETF this year
- ESMV launches Thursday, adding an ESG twist to the strategy
This article is for subscribers only.
The biggest low-volatility fund has seen more outflows than any other equity ETF this year, as investors shun the defensive trade for riskier stocks. Now BlackRock Inc. is betting the systematic strategy can find new fans with a little help from the ESG boom.
The largest issuer of exchange-traded funds has just launched the iShares ESG MSCI USA Min Vol Factor ETF (ticker ESMV). It’s a socially conscious take on the now-$29 billion iShares MSCI USA Min Vol Factor ETF (USMV), which has been hit by $8 billion in outflows this year.