iShares ETFs for Diversified Investing

iShares ETFs offer a wide range of options for investors looking to diversify their portfolios. With over 800 ETFs to choose from, you can find an investment that fits your goals and risk tolerance.

iShares ETFs track a variety of indexes, sectors, and asset classes, allowing you to spread your investments across different types of assets. This can help reduce risk and increase potential returns.

iShares ETFs have lower fees compared to actively managed funds, which can save you money over time. For example, the iShares Core S&P Total US Stock Market ETF has an expense ratio of 0.04%.

By investing in a diversified portfolio of iShares ETFs, you can gain exposure to different markets and asset classes, which can help you ride out market fluctuations.

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In 1993, State Street launched the first ETF in the United States, Standard & Poor's Depositary Receipts (SPDR S&P 500), which is still trading today.

This ETF was a game-changer, and it paved the way for other ETFs to follow. Morgan Stanley soon launched its own series of ETFs called WEBS, which tracked MSCI foreign stock market indices.

The WEBS ETFs were a bit different from the SPDR fund, as they were mutual funds rather than unit investment trusts. This was an important distinction, and it showed that ETFs could be structured in different ways.

In 2000, Barclays put a significant effort behind growing the ETF market, launching over 40 new funds under the iShares brand. This was a bold move, and it paid off in a big way.

The iShares brand quickly became a leading provider of ETFs, and it solidified Barclays' position in the market. In 2006, iShares made another significant move, purchasing the INDEXCHANGE ETF unit of HypoVereinsbank for €240 million.

This acquisition gave iShares a major boost in Europe, and it further solidified its position as a leading ETF provider. In 2009, Barclays announced plans to sell iShares to CVC Capital Partners, but BlackRock soon made a competing bid that ultimately won out.

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You can save a significant amount of money by following just 11 tips to save 100 Euro more into an ETF saving plan. This can add up over time and make a big difference in your investment portfolio.

If you're new to ETF investing, consider starting with the basics - understanding what an ETF is and how to buy one. The frequently asked questions section can provide you with the answers you need to get started.

To diversify your portfolio, consider investing in specific countries with ETFs. This can help you spread your risk and potentially increase your returns.

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When building a solid investment portfolio, it's essential to consider a buy and hold strategy. This approach involves selecting a group of investments and holding onto them for the long term, rather than constantly buying and selling.

The iShares ETFs listed as top-rated by Morningstar are a great starting point for a buy and hold strategy. These ETFs have earned a Gold Medalist Rating with 100% analyst coverage as of January 2025.

One of the key benefits of a buy and hold strategy is the potential for long-term growth. The iShares LifePath Target-Date Series, for example, has seen a staggering 709.92% return since inception.

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To get started with a buy and hold strategy, consider the following top-rated iShares ETFs: iShares Core MSCI Total International Stock ETF (IXUS), iShares Core S&P 500 ETF (IVV), and iShares Core Total USD Bond Market ETF (IUSB).

These ETFs cover the core building blocks of an investment portfolio, including US stocks, US bonds, and international stocks. They're a great starting point for building a diversified portfolio.

Here are some key statistics for the iShares Core S&P 500 ETF (IVV):

These returns demonstrate the potential for long-term growth with a buy and hold strategy.

The iShares Short-Term TIPS Bond Index is a fund that invests mainly in US Treasury notes. It seeks to beat the Bloomberg US Treasury Inflation-Protected Securities 0-5 Year Index.

This fund offers exposure to the short end of the curve, which correlates more closely with inflation than portfolios that include longer-term TIPS portfolios.

The iShares Short-Term TIPS Bond Index has a Morningstar Category of Short-Term Inflation-Protected Bond.

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Investing in various sectors can be a smart move, especially if you're looking to diversify your portfolio. The tech sector is a prime example, with companies like Apple and Microsoft consistently delivering strong returns.

In the healthcare sector, biotech and pharmaceutical companies are often at the forefront of innovation, with many promising new treatments and cures on the horizon. Biogen, for instance, has made significant breakthroughs in multiple sclerosis treatment.

Real estate investment trusts (REITs) offer a unique opportunity to invest in property without directly managing it. The REIT sector is known for its relatively stable returns and attractive dividend yields.

The energy sector is another area where you can find opportunities, particularly in renewable energy sources like solar and wind power. Companies like Tesla are leading the charge in this space.

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Investing in the stock market can be a thrilling yet intimidating experience, especially for new investors. You want to make informed decisions, but where do you start?

One key aspect to consider is volatility, which measures the degree of price fluctuations. According to the data, the 5-year volatility of the asset is 21.84%, indicating that the price has changed significantly over the past five years.

A high volatility means the asset is riskier, and you may experience larger price swings. For instance, the maximum drawdown for a 5-year period is -33.71%, which is a significant loss. This highlights the importance of assessing the risk before investing.

To put the risk into perspective, let's look at the return per risk for different periods. The 1-year return per risk is 2.26, which means that for every 1% of risk taken, the asset has returned 2.26% over the past year.

Here's a summary of the key risk metrics for different periods:

By examining these risk metrics, you can make more informed decisions about your investment strategy and adjust your approach as needed.

International markets can be a great way to diversify your portfolio, and the iShares Core MSCI Total International Stock ETF is a top choice for this.

This ETF tracks the MSCI ACWI ex USA Investable Market Index, which means it owns large-, mid-, and small-cap stocks from around the world, weighted by market cap.

One of the key benefits of this ETF is its low fee, which makes it a cost-effective way to invest in international markets.

The Morningstar Category for this ETF is Foreign Large Blend, indicating that it's a solid choice for investors looking for a broad international stock portfolio.

Here are some key details about the iShares Core MSCI Total International Stock ETF:

This ETF is a great option for buy-and-hold investors, as it provides low-cost access to nearly every stock in the international market.

The MSCI Total International Stock Market is a vast and diverse landscape, covering nearly every stock in the international market. It's tracked by the MSCI ACWI ex USA Investable Market Index.

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This index is a broad representation of the global market, including large-, mid-, and small-cap stocks, all weighted by market cap. The iShares Core MSCI Total International Stock ETF owns these stocks, providing low-cost access to the international market.

The ETF's low fee and superior diversification make it an attractive option for investors. By owning nearly every stock in the international market, it's able to shine through any short-term hiccups.

The Morningstar Category for this ETF is Foreign Large Blend, indicating its focus on large-cap international stocks.

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The MSCI EAFE Growth index is used by the iShares MSCI EAFE Growth ETF to track its performance. This index focuses on foreign large-growth stocks.

The iShares MSCI EAFE Growth ETF effectively captures most of the foreign large-growth opportunity set. It's a low-fee fund that's more diversified than most of its peers.

The fund has low turnover, which is a good thing because it means the fund managers aren't constantly buying and selling stocks. This can help reduce costs and make the fund more stable.

Here are some key characteristics of the iShares MSCI EAFE Growth ETF:

The fund excludes Canadian and emerging-markets stocks, which can result in some slight differences in sector and country exposures compared to its peers.

The Federal Reserve's interest rate decisions can have a significant impact on the market. The Fed is expected to continue cutting rates in 2025, according to the BlackRock Investment Institute's 2025 Global Market Outlook.

Market trends from 2024 show that investors are looking for stable and secure investments. The iShares ETF and ETP market trends report highlights key trends across global equity and fixed income markets.

The BlackRock Investment Institute's 2025 Global Market Outlook suggests that investors should be prepared for a transformation in the market. This could be driven by changes in global economic trends and investor behavior.

To stay ahead of the game, it's essential to have access to reliable market insights and tools. iShares offers a range of tools and resources to help investors make informed decisions, including the ability to discover ETFs by their holdings.

Investors can use the Fed outlook for 2025 to inform their investment decisions and stay ahead of potential market shifts. By staying informed and adaptable, investors can navigate the complexities of the global market with confidence.

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The iShares Core Total USD Bond Market ETF is a great option for investors looking to cast a wide net in the bond market. It tracks the Bloomberg US Universal Index, which includes taxable bonds across the entire credit spectrum with at least one year until maturity.

This fund takes on a bit more credit risk than some of its peers, landing in the intermediate core-plus bond category. The index includes high-yield corporate bonds, dollar-denominated emerging-markets bonds, and other lower-quality credits.

The fund's focus on a broad range of bonds makes it a good choice for investors seeking a long-term, diversified bond portfolio.

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The US Bond Market is a vast and diverse space, with a wide range of investment options. The iShares Core Total USD Bond Market ETF is a great example of this, tracking the Bloomberg US Universal Index.

This index includes taxable bonds across the entire credit spectrum with at least one year until maturity. That's a pretty broad net, covering high-yield corporate bonds, dollar-denominated emerging-markets bonds, and other lower-quality credits.

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The iShares Core Total USD Bond Market ETF takes on a bit more credit risk than some other funds, which is why it's categorized as an intermediate core-plus bond. This means it's not the most conservative option, but it also offers the potential for higher returns.

The fund's focus on the entire credit spectrum makes it a good choice for investors looking for a long-term investment. It's not a short-term fix, but rather a way to cast a wide net and potentially benefit from a broad range of bond types.

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The iShares Core US Aggregate Bond ETF is a top choice for investors looking for a conservative option. It's categorized as an Intermediate Core Bond by Morningstar.

This ETF tracks the Bloomberg US Aggregate Bond Index, which includes taxable, investment-grade US-dollar-denominated bonds with at least one year until maturity. The index is tilted toward the largest and most liquid US Treasuries, corporate bonds, and agency mortgage-backed securities.

The iShares Core US Aggregate Bond ETF earns an Above Average Process rating for its effective representative sampling of its index. Morningstar analyst Zachary Evens praises the fund's "conservative portfolio and razor-thin expense ratio."

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Target-Date Funds offer a convenient way to invest for retirement, automatically adjusting your asset allocation as you get closer to your target date. This can be a great option for those who don't want to actively manage their investments.

The iShares LifePath Target-Date Series is the ETF equivalent to BlackRock's top-rated target-date series, making it a strong option for investors using individual retirement accounts or taxable accounts.

One notable aspect of the iShares LifePath Index Target-Date Series is its index-based approach, which benefits from BlackRock's robust asset allocation strategy and research-intensive culture.

BlackRock's top-rated target-date series has made forward-thinking changes that have improved outcomes for investors, such as a significant glide path change nearly a decade ago based on updated capital markets assumptions and studies into investor behavior.

Here are some key points to consider when looking at Target-Date Funds:

By choosing a Target-Date Fund, you can have peace of mind knowing that your investments are automatically adjusted to match your changing needs over time.

BlackRock Funds offer a range of options for investors, including the BlackRock Global Allocation fund, which has a Morningstar Category of Global Allocation and a portfolio that has become more concentrated under CIO Rick Rieder.

The fund has reduced its holdings to 80-120 names from over 400 and focuses on companies with strong cash flows, such as Microsoft MSFT and Amazon.com AMZN.

BlackRock also offers the LifePath Index Target-Date Series, a top-rated target-date series that is index-based and benefits from the firm's robust approach to asset allocation and research-intensive culture.

The team overseeing the series has made thoughtful changes that have improved outcomes for investors, including a significant glide path change nearly a decade ago based on updated capital markets assumptions and studies into investor behavior.

BlackRock Total Return is another option, which is essentially the same portfolio as its ETF counterpart, just in a different wrapper, and uses an in-house framework emphasizing broad trends that will typically last between two and four quarters.

To explore more BlackRock mutual funds and iShares ETFs, you can visit Morningstar's asset-management company hubs for iShares and BlackRock, or use the Morningstar Investor Screener tool to build your own screen based on criteria such as stock or bond, and more.

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The BlackRock Global Allocation fund has undergone significant changes since Rick Rieder took over as CIO of Fixed Income in 2019. The portfolio has become more concentrated, now holding 80-120 names compared to over 400 previously.

One notable shift in the fund's approach is its focus on companies with strong cash flows. This is evident in its investment in mega-caps like Microsoft and Amazon.com.

The fund's new approach is likely to benefit from the stability and growth potential of these large-cap companies.

BlackRock Total Return is a bond-focused investment portfolio that's essentially the same as its ETF counterpart. It's managed by Rieder and his team, who use an in-house framework to identify broad trends that will last between two and four quarters.

The portfolio's Morningstar category is Intermediate Core-Plus Bond, which suggests it's a solid choice for investors looking for a balanced approach. I've seen some investors use this type of bond fund as a core holding in their portfolios.

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BlackRock Total Return has delivered impressive returns over the long term. According to the data, since inception, the fund has returned a staggering +709.92%. That's a remarkable track record, especially when you consider the ups and downs of the market.

Here are the fund's returns over the past few years:

The fund's performance can vary from year to year, but it's clear that it has a strong long-term track record. In 2021, for example, the fund returned +39.07%, while in 2022 it lost -13.30%.

When evaluating BlackRock mutual funds, you can find a comprehensive list of their offerings on Morningstar's asset-management company hub.

To get started, simply visit Morningstar's website and search for BlackRock's mutual funds. From there, you can review the lists of available funds and segment them by criteria such as stock or bond.

You can also use the Morningstar Investor Screener tool to build your own custom screen for BlackRock mutual funds. This allows you to filter the results based on your specific needs, such as asset class, category, ratings, and more.

To use the screener, simply choose the mutual fund type, enter "BlackRock" as the keyword, and then drill down further based on your preferences.

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Index funds are a type of investment that tracks a specific market index, such as the S&P 500.

They're often created by investment companies like BlackRock, the same firm behind iShares ETFs, and hold a basket of stocks that mirror the index.

By investing in an index fund, you can gain broad diversification and potentially lower fees compared to actively managed funds.

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The S&P 500 Index is a market-cap-weighted index of 500 of the largest US stocks chosen by an index committee based on liquidity and profitability standards.

This index is widely tracked by index funds and ETFs, such as the iShares S&P 500 Index, which replicates the S&P 500 in a different wrapper.

The Vanguard S&P 500 UCITS ETF (USD) Distributing has a fund size of 44,697 million euros and a TER (Total Expense Ratio) of 0.07% per annum.

Other funds that track the S&P 500 Index include the Invesco S&P 500 UCITS ETF and the iShares Core S&P 500 UCITS ETF USD (Dist), both of which have a TER of 0.07% per annum.

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The SPDR S&P 500 UCITS ETF (Dist) has a TER of 0.03% per annum, making it a low-cost option for tracking the S&P 500 Index.

Here are some key facts about the S&P 500 Index and its tracking funds:

The S&P 500 Index is a popular choice for index funds and ETFs due to its broad market exposure and low costs.

The S&P Total US Stock Market index is a broad market-cap-weighted index that includes all US-domiciled stocks that trade on a major US exchange and pass S&P's minimum liquidity threshold.

This index is tracked by the iShares Core S&P Total US Stock Market ETF, which provides exposure to the entire investable US stock market. It's a great option for investors who want to buy and hold in 2025 and gain broad diversification across the US stock market.

The S&P Total Market Index includes all US stocks, not just the largest ones, but the largest stocks make up the bulk of the portfolio due to market-cap weighting. This means that the largest stocks in the US make up the majority of the ETF's holdings.

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The iShares Core S&P Total US Stock Market ETF has a Morningstar Category of Large Blend, which is the same category as the iShares Core S&P 500 ETF. However, the S&P Total Market Index is a broader index that includes small and midsize companies, whereas the S&P 500 index only includes the 500 largest US stocks.

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