iShares Edge MSCI USA Multifactor UCITS ETF USD (Acc)

Issuer: iShares

Asset Class: Equity

TER: 35bps

Trading Currency: USD

Pays Income: False

Listing Date: 08 Sep 2015

Ticker: IFSU

ISIN: IE00BZ0PKS76

This investment vehicle offers a strategic approach to the US equity market, aiming to provide a smarter alternative to traditional market-cap-weighted indices. It seeks to track the performance of an index composed of large and mid-capitalization US companies that demonstrate strong overall characteristics across four key investment factors: Quality, Value, Momentum, and Low Size. By combining these historically rewarded factors into a single portfolio, the fund aims to enhance long-term risk-adjusted returns compared to the broader US stock market. The methodology selects stocks with high-quality metrics (like strong balance sheets and stable earnings), attractive valuations, positive price momentum, and smaller market capitalizations relative to the parent index.

The construction of the underlying index is designed to maximize exposure to these target factors while maintaining a similar level of market risk as the broad MSCI USA Index. This makes it a suitable core holding for investors looking to introduce a factor-based tilt into their portfolios without significantly altering their overall market exposure. The fund employs a physical replication strategy, meaning it holds the actual constituent stocks of the index. As an accumulating share class, any dividends paid by the underlying companies are automatically reinvested back into the fund, which helps to compound returns over time. This structure is often preferred by long-term investors seeking to grow their capital without the need to manage regular income distributions.