iShares: An Overview of the Leading ETF Provider
What is iShares?
iShares is a global exchange-traded fund (ETF) brand managed by BlackRock. It offers a broad array of ETFs—across equities, fixed income, commodities, real estate, and thematic strategies—providing investors with low-cost, index-linked exposure to market segments worldwide. The platform includes hundreds of funds and represents a substantial share of the global ETF market.
Key takeaways
- iShares provides wide ETF coverage—broad-market, regional, sector, fixed income, and thematic funds—allowing targeted or diversified exposures.
- iShares ETFs are known for low expense ratios and tax efficiency compared with many mutual funds.
- iShares funds are listed on major global exchanges and are accessible through most brokerages.
- Together with other large issuers, iShares accounts for a significant portion of ETF assets under management.
Why investors use iShares
- Low cost: Many iShares Core funds offer very low expense ratios, making them efficient building blocks for long-term portfolios.
- Tax efficiency: ETF structure and passive index tracking generally result in lower turnover and potential tax advantages versus actively managed funds.
- Diversification and choice: Investors can access broad-market indexes, country and regional exposures, sector and industry niches, bond markets, and thematic strategies (e.g., ESG, climate, technology).
- Liquidity and accessibility: iShares ETFs trade on major international exchanges and are purchasable through standard brokerage accounts.
- Scale and reliability: As part of BlackRock’s offerings, iShares benefits from deep liquidity, large asset bases for many flagship funds, and broad market-maker support.
Popular iShares ETFs (examples)
Below are representative iShares ETFs commonly used by investors for core and international exposure:
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- iShares Core S&P 500 ETF (IVV)
- Objective: Track the S&P 500 Index (U.S. large-cap core exposure).
- Typical uses: Core U.S. equity allocation, long-term growth.
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Notable features: Very low expense ratio compared with many active funds; designed to closely track the benchmark.
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iShares MSCI EAFE ETF (EFA)
- Objective: Provide exposure to developed-market stocks outside the U.S. and Canada (Europe, Australasia, Far East).
- Typical uses: International developed-market equity allocation.
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Notable features: Broad coverage across hundreds of stocks for regional diversification.
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iShares Core U.S. Aggregate Bond ETF (AGG)
- Objective: Broad exposure to U.S. investment-grade bonds (Treasuries, corporate, mortgage-backed securities).
- Typical uses: Core fixed-income allocation, income and diversification.
- Notable features: Low-cost access to a diversified bond index.
Choosing and using iShares ETFs
When evaluating iShares ETFs (or any ETF), consider:
* Index tracked and how it fits your investment objective.
* Expense ratio and how fees affect long-term returns.
* Liquidity and average trading volume—important for execution and bid-ask spreads.
* Tax considerations—ETF structure can be tax-efficient, but underlying holdings and distribution policy matter.
* Portfolio role—use ETFs for core allocations, targeted tilts, or tactical exposures depending on your plan.
Conclusion
iShares offers a comprehensive ETF lineup that serves both core portfolio construction and specialized investing needs. With many low-cost, widely traded funds across asset classes and regions, iShares is a commonly used option for investors seeking efficient, scalable market exposure.