- It's a big call for BlackRock (NYSE:BLK), considering those sorts of funds manage just $282B today. By 2025, the iShares owner figures assets will hit $2.4T - implying a 19% annual organic growth rate, or double that of the overall ETF market.
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With nothing left to cover in plain vanilla ETFs, smart beta is highly trendy at the moment as it offers the possibility of market-beating returns for investors and higher fees for sponsors.
- BlackRock's iShares is offering nine new multifactor sector ETFs, launched a factors website, and has introduced IShares Edge - a suite of factor ETFs covering minimum volatility, single and multifactor funds.
- Mutual fund giant Fidelity is looking into smart beta products, as is Ameriprise's (NYSE:AMP) Columbia Threadneedle. Success isn't guaranteed: Direxion earlier this year closed down three of its smart beta ETFs due to lack of investor interest.