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BlackRock lists two new hedged ETFs

BlackRock’s iShares business has announced the launch of two new currency-hedged exchange traded funds (ETFs) on the ASX.

According to a statement released yesterday, the new funds are local hedged versions of iShares international ETFs, iShares Core S&P 500 ETF (IVV) and iShares Global 100 ETF (IOO).

The new funds increase the number of iShares ETFs available on the ASX to 28, with assets under management of $5.73 billion as at 23 January 2015.

“ETFs providing international exposures are popular with investors due to their portfolio diversification benefits. And for investors who are concerned about currency risk, hedged ETFs are increasingly in demand,” said Jon Howie, head of BlackRock’s iShares business in Australia.

“With the Australian share market representing just three per cent of global markets, it means 97 per cent of the investment opportunity is outside Australia. iShares international ETFs help investors access these global opportunities and provide instant, diversified exposures with just one trade on the ASX.

“The addition of these hedged ETFs, IHOO and IHVV, allows investors to access international investment opportunities, without the added concern of currency risk,” he said.