BlackRock Asset Management Canada Limited (iShares)

BlackRock Asset Management Canada Limited (iShares)

June 13, 2017 08:00 ET

BlackRock Canada Strengthens the iShares Core with the Launch of New Dividend Suite

Further enhancements include adding XBB and XSB to the iShares Core

TORONTO, ONTARIO--(Marketwired - June 13, 2017) - (TSX:XDIV) (TSX:XDU) (TSX:XDUH) (TSX:XDG) (TSX:XDGH) (TSX:XBB) (TSX:XSB) - iShares, the industry-leading exchange traded fund (ETF) business at BlackRock Asset Management Canada Limited (BlackRock Canada), an indirect, wholly-owned subsidiary of BlackRock, Inc. (BlackRock), has expanded its Core series with the launch of a new suite of MSCI Quality Dividend Index ETFs.

As Canadian investors continue to search for income in a yield-starved environment, these funds aim to provide a low-cost way for investors to access portfolios of high quality companies with above-average dividend yields. Investors will have the option to choose between Canadian, U.S., and global portfolios. XDIV, XDU, and XDG have now closed the initial offering of their units and the units will be listed on the TSX when the market opens today; XDUH and XDGH, which provide Canadian dollar hedged U.S. and global exposures, respectively, are expected to be listed on the TSX when the markets open on June 16th, 2017.

In addition, iShares will be further enhancing the Core series with the inclusion of two existing iShares fixed income funds, XBB and XSB.

"The iShares Core funds continue to be embraced by individual investors, advisors, and institutions alike, delivering broad market exposures with superior quality and value," said Warren Collier, Head of iShares, BlackRock Canada. "The addition of the new Core dividend funds will provide Canadians with a comprehensive set of options to satisfy their income needs."

The five new iShares Core MSCI Dividend Index ETFs are noted below, including their management fees and initial listing dates:

Ticker Fund Name Management Fee Listing Date
XDIV iShares Core MSCI Canadian Quality Dividend Index ETF 0.10% June 13, 2017
XDU iShares Core MSCI US Quality Dividend Index ETF 0.14% June 13, 2017
XDG iShares Core MSCI Global Quality Dividend Index ETF 0.20% June 13, 2017
XDUH iShares Core MSCI US Quality Dividend Index ETF (CAD-Hedged) 0.14% June 16, 2017*
XDGH iShares Core MSCI Global Quality Dividend Index ETF (CAD-Hedged) 0.20% June 16, 2017*

*Listing dates are subject to regulatory approvals.

Income Opportunities in a Low Return Environment

Consistent income generation is a key objective of many investors, and one that is increasingly challenging due to the low growth, low yield environment that persists today. The new suite of iShares Core MSCI Quality Dividend Index ETFs seeks to address this challenge by investing in companies with above-average dividend yields and stable or growing dividends. The funds also emphasize companies with the capacity to sustain dividends into the future by screening for companies that score well on metrics of financial quality such as strong return on equity and low earnings variability. Investors will have the option of choosing between diversified portfolios of Canadian, U.S., or global securities, with foreign currency exposure hedged or unhedged. The funds will seek to replicate MSCI High Dividend Yield Indices.

"In an environment where yield can be hard to find, Canadians are looking for new ways to earn persistent sources of income. These new products will provide investors with a cost effective, dividend that places an emphasis on quality stocks that can help deliver a regular income stream to investors." said Pat Chiefalo, Head of iShares Product, BlackRock Canada.

Enhancing the Core

With the addition of the new iShares MSCI Quality Dividend Index ETFs, the iShares Core will now include low-cost funds that provide exposure to companies with above-average dividend yields. In addition, for investors who incorporate broad-based Canadian fixed income exposure in their portfolios, the Core has been further enhanced to now include the iShares Core Canadian Universe Bond Index ETF (XBB) (formerly, the iShares Canadian Universe Bond Index ETF), the first fixed income ETF launched in Canada, and the iShares Core Canadian Short Term Bond Index ETF (XSB) (formerly, the iShares Canadian Short Term Bond Index ETF).

"While the Canadian ETF industry has undergone tremendous growth, including an increase in the types of products offered, the iShares Core family continues to be an important distinguisher, helping investors to more easily identify the foundational funds to hold at the core of their portfolio," said Warren Collier, Head of iShares, BlackRock Canada.

The iShares Core series is one of our fastest-growing segments, both globally and in Canada. Since introducing the Core to Canadians in March 2014, core exposures have seen a significant growth in assets, both in iShares ETFs and more broadly. During this period, while the majority of new funds launched were in non-core exposures, more than 50% of total Canadian ETF flows have gone into core exposures1. The expanded iShares Core is now a more comprehensive suite of funds, giving Canadian investors more choice, broader market exposures, and cost efficiency in building the long-term portions of their portfolios. With only a handful of funds, the iShares Core covers the major asset classes used by many Canadian investors in their portfolios today, including Canadian equities and bonds, Global, U.S. and Canadian dividend, as well as U.S. and international equities.

1 Sources: IFIC, Investor Economics, BlackRock. Of the 245 products launched since the beginning of March 2014, 90% were in non-core and 80% had an active element.

Further information on the iShares Funds can be found at www.blackrock.com/ca; to learn more about the iShares Core visit www.ishares.ca/core.

About BlackRock

BlackRock is a global leader in investment management, risk management and advisory services for institutional and retail clients. At March 31, 2017, BlackRock's AUM was US$5.4 trillion. BlackRock helps clients around the world meet their goals and overcome challenges with a range of products that include separate accounts, mutual funds, iShares® (exchange-traded funds), and other pooled investment vehicles. BlackRock also offers risk management, advisory and enterprise investment system services to a broad base of institutional investors through BlackRock Solutions®. As of March 31, 2017, the firm had approximately 13,000 employees in more than 30 countries and a major presence in global markets, including North and South America, Europe, Asia, Australia and the Middle East and Africa. For additional information, please visit the Company's website at www.blackrock.com/ca / Twitter: @BlackRockCA / Blog: www.blackrockblog.com/can

About iShares

iShares® is a global leader in ETFs, with more than a decade of expertise and commitment to individual and institutional investors of all sizes. With over 700 funds globally across multiple asset classes and strategies and more than US$1.4 trillion in assets under management as of March 31, 2017, iShares helps clients around the world build the core of their portfolios, meet specific investment goals and implement market views. iShares funds are powered by the expert portfolio and risk management of BlackRock, trusted to manage more money than any other investment firm2.

2 Based on US$5.4 trillion in AUM as of 3/31/17

iShares® ETFs are managed by BlackRock Asset Management Canada Limited. Commissions, trailing commissions, management fees and expenses all may be associated with investing in ETFs. Please read the relevant prospectus before investing. The funds are not guaranteed, their values change frequently and past performance may not be repeated. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional.

MSCI® and EAFE® are trademarks of MSCI, Inc. ("MSCI"). XDIV, XDU, XDUH, XDG, and XDGH are permitted to use the MSCI mark and, as applicable, the EAFE mark pursuant to a license agreement between MSCI and BlackRock Institutional Trust Company, N.A., relating to, among other things, the license granted to BlackRock Institutional Trust Company, N.A. to use the indices. BlackRock Institutional Trust Company, N.A. has sublicensed the use of these trademarks to BlackRock Asset Management Canada Limited. XDIV, XDU, XDUH, XDG, and XDGH are not sponsored, endorsed, sold or promoted by MSCI and MSCI makes no representation, condition or warranty regarding the advisability of investing in XDIV, XDU, XDUH, XDG, and XDGH.

XBB and XSB and are not in any way sponsored, endorsed, sold or promoted by FTSE International Limited, the London Stock Exchange Group companies, TSX Inc. and its affiliates, or FTSE TMX Global Debt Capital Markets Inc. (together the "Licensor Parties") and the Licensor Parties do not make any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE TMX Canada Universe Bond Index or FTSE TMX Canada Short Term Bond Index ("the Indices") and/or the figure at which the said Indices stands at any particular time on any particular day or otherwise. The Indices are compiled and calculated by FTSE TMX Global Debt Capital Markets Inc and all copyright in the Index values and constituent lists vests in FTSE TMX Global Debt Capital Markets Inc. None of the Licensor Parties shall be liable (whether in negligence or otherwise) to any person for any error in the Indices and the Licensor Parties shall not be under any obligation to advise any person of any error therein. "FTSE®" is a trade mark of the London Stock Exchange Group companies and is used under licence." "TMX" is a trade mark of TSX Inc. and is used under licence.

© 2017 BlackRock Asset Management Canada Limited. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc., or its subsidiaries in the United States and elsewhere. Used with permission. 170289

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