Ishares launches three small cap ETFs

IShares, the exchange traded fund (ETF) arm of Barclays Global Investors, has launched three new small cap iShares ETFs.

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IShares claims the move makes it the largest provider of small cap ETFs in Europe.

The new ETFs are the iShares S&P SmallCap 600, iShares MSCI AC Far East ex-Japan SmallCap and the iShares MSCI Japan SmallCap.

The iShares S&P SmallCap 600 provides investors with liquid exposure to US small cap stocks across sectors such as information technology, financials, industrials, health care and consumer discretionary.

The iShares MSCI AC Far East ex-Japan SmallCap provides investors with small cap exposure to developed and emerging market economies in the Far-East, including South Korea, Taiwan, Hong Kong and China and across a range of sectors.

The iShares MSCI Japan SmallCap exposes investors to Japanese small cap companies, including financials and industrials.

Frank Henze, head of product development at iShares, said: "IShares recognises that small cap ETFs can provide investors with the opportunity to add real value to their asset allocation needs.

"Although small caps are considered more volatile than other types of equities, research suggests that they can out-perform large caps over the long term."

He added: "It is our belief that small cap stocks will continue to contribute to future economic growth and therefore represent an attractive investment choice."

The launches take the total number of iShares ETFs listed on the London Stock Exchange to 62, and boosts the number of iShares ETFs available throughout Europe to 142.

In February, ishares also launched two new ETfs on the LSE. (See story here.)



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