In this article, we will analyze why you should choose iShares (BlackRock) as your ETF and how iShares has established itself as a leader in investment funds.
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Why invest in an iShares ETF?
The main objective of a iShares ETF is to build a portfolio diversified with a passive management.
By holding a single iShares ETF, the investor gains access to a basket of stocks or bonds, thus replicating a stock market index (such as the MSCI World with the ETF IWDAThis simplifies management while optimizing long-term returns.
Note that iShares is a subsidiary of Blackrock.
⚠️ This article reflects a personal opinion and not investment advice. Investing involves risks, including the possibility of losing capital.
iShares' reputation
iShares, a subsidiary of BlackRock, is the world's largest ETF issuer.
Its passive approach, competitive fees and transparency make it a trusted player for investors, whether beginners or experienced.
In my opinion, iShares is an absolute benchmark in ETFs, thanks to its size, liquidity and diversity.
A global leader in ETFs
With over 1,200 ETFs And over $5 trillion in assets under management*. Indeed, iShares dominates the market.
This size offers a exceptional stability and reduces the risk of being taken over by a competitor.
How iShares became the leader in purchased ETFs
The rise of’iShares to the top of the ETF market relies on three strategic pillars :
- Early innovation :
iShares has been one of the first funds to launch ETFs in 2000, with an initial range covering major indices such as the S&P 500. This advance allowed BlackRock to capture a significant share of the market from its very beginnings.
- The strategic acquisition by Barclays Global Investors (BGI) :
In 2009, BlackRock acquired Barclays Global Investors, who already managed the brand iShares. This acquisition has doubled the size from BlackRock and gave him access to a extended range of ETFs, as well as to a global clientele. iShares has thus become the undisputed leader in terms of assets under management.
- Global expansion and adaptation to local needs :
iShares has developed ETFs domiciled in multiple jurisdictions (United States, Ireland, Switzerland, etc.), which allowed investors worldwide to access products tax optimized. Furthermore, BlackRock has invested heavily in technology and distribution, making its ETFs accessible on all major brokerage platforms.
Today, iShares represents over 30,000 global ETF assets, proof of his dominance.
Competitive fees (TER)
iShares ETFs are distinguished by... very low management fees (TER), often comparable to those of Vanguard. Here are a few examples:
- iShares Core MSCI World (IWDA) : 0.20 % of TER
- iShares S&P 500 (IVV) : 0.04 % of TER
- iShares Euro Stoxx 50 (EUN2) : 0.10 % of TER
These fees remain among the lowest on the market, which optimizes long-term returns for the investor.
A performance consistent with the indices
An ETF must closely replicate the performance of its benchmark index. iShares ETFs, like IWDA (MSCI World) Or IVV (S&P 500), achieve this with a remarkable precision.
For example, a 10-year comparison between the ETF IVV and the index S&P 500 shows a near-perfect overlap, proof of their effectiveness.
By comparing, I noted that there is only 1% difference over 10 years. And we see no difference on the graph.
Regular dividends
iShares distributes dividends 2 to 4 times a year according to ETFs.
Note that this frequency allows investors to reinvest quickly Their gains are an asset for portfolio growth.
A huge selection of ETFs
iShares offers over 1,200 ETFs, covering:
- All geographical areas (world, United States, Europe, emerging markets, etc.)
- Various clues (MSCI World, S&P 500, Euro Stoxx 50, etc.)
- Specific strategies (dividends, bonds, ESG, etc.)
- Accumulator or distributive versions
In truth, this diversity allows each investor to find an ETF that is suitable for one's strategy and objectives.
ETFs tailored to all tax residencies
iShares offers domiciled ETFs:
- In the United States (for American investors)
- In Ireland (for European investors, with optimized taxation)
- In Swiss (for Swiss investors)
- and also other jurisdictions
This allows for a tax optimization depending on their country of residence.
iShares Summary
Let's analyze the advantages of iShares at a glance 🤑
| Advantage | Detail |
|---|---|
| Very low fares (TER) | Among the cheapest on the market |
| Passive management | It replicates the clues very faithfully without active intervention. |
| Stability | A global leader with over 5 trillion $ under management. |
| Huge choice | More than 1,200 ETFs (geographic areas, indices, dividends, ESG, etc.). |
| Regular dividends | 2 to 4 times a year depending on the ETF. |
| Appropriate taxation | ETFs domiciled in the US, Ireland or Switzerland. |
| High liquidity | Easy and fast buying/selling on all platforms. |
| Transparency | The composition of the ETFs is clearly communicated by the website. |
| Reputation | Undisputed leader in the ETF market. |
Conclusion
iShares stands out because of:
- A passive and diversified management
- Of the fees among the lowest on the market
- A historically consistent performance in line with indices
- A the world's largest range of ETFs
My opinion
In my opinion, iShares is one of the best choices for passive investors. looking for simplicity, liquidity and diversity.
In reality, iShares offers everything a passive investor could want: transparency, near-identical index tracking, and reduced fees.
iShares vs Vanguard vs UBS
Here is a table to compare the three ETF investment funds.
| Criteria | iShares (BlackRock) | Vanguard | UBS ETF |
|---|---|---|---|
| Fees (TER) | Very low to moderate | Very low | Moderates |
| ETF range | 1,200+ ETFs (the broadest) | 80+ ETF | ~100 ETFs (Europe/Switzerland focus) |
| Replication | Excellent | Excellent | Good |
| Registered address | US, Ireland, Switzerland | US, Ireland, Switzerland | Switzerland, Ireland |
| Liquidity | Very high (leader in Europe) | High to very high (especially in the United States) | Good (especially in Switzerland) |
| Dividends | 2 to 4 times/year | 4 times/year (most ETFs) | Annual or semi-annual |
Conclusion iShares and Vanguard are equivalent in quality, but iShares offers more choice and greater liquidity in Europe.
UBS remains a reliable alternative, but less competitive in terms of diversity and fees.
Why choose iShares (BlackRock) as an ETF?
FAQ: Why choose an iShares ETF for investing?
What is an ETF?
A ETF (Exchange-Traded Fund) is a publicly traded fund that replicates an index (like the MSCI World) or a basket of assets. In reality, it allows you to invest in hundreds of stocks or bonds in a single transaction.
Why choose an ETF rather than an actively managed fund?
ETFs offer:
✔ Reduced fees (vs. active funds)
✔ Total transparency (known composition)
✔ High liquidity (real-time buying/selling)
✔ Passive management (less risk of underperformance)
Is iShares suitable for beginners?
Yes, indeed! iShares ETFs are easy to understand, with low fees and automatic diversification. Therefore, they are perfectly suited to investors beginners and experienced users alike.
What are the risks associated with iShares ETFs?
Like all stock market investments, ETFs include market risks (fall in indices). However, their diversification reduces specific risks to a company or sector.
How to buy iShares ETFs
iShares ETFs are available on most brokerage platforms (Interactive Brokers, Swissquote, Saxo, Yuh, etc.). In truth, it is enough to’open an account, of search for the desired ETF (ex. : IWDA Or IVV) and of place a buy order.
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