In this article we will analyze. Why choose iShares (BlackRock) as an ETF?
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The purpose of holding a product iShares?
🔍 The goal of owning an iShares mutual fund is to build a diversified stock portfolio with passive management.
In this way, a shareholder can grow his money with several stocks on the stock market combined in a single ETF. Note that an ETF is also known as a Tracker.
For example, the IVV ETF allows you to replicate the SP500 stock market index with passive management.
Thus, the investor benefits from a diversified stock portfolio according to the performance of the chosen strategy.
iShares (BlackRock) reputation
👉 In many countries around the world, shareholders have the option to choose an iShares ETF from the investment company BlackRock. In fact, iShares is an investment company with a global reputation for its stock market profits.
So as not to be confused, iShares is a managed stock exchange subsidiary of BlackRock. For us investors, the important thing to understand is that BlackRock manages iShares.
In this article I give my opinion along with research data.
⚠️ This article is not investment advice. It is only my opinion. Please note that investing can cause money losses. ❕
One of the largest stock investment funds in the world 💪
| investment fund size | 👍 |
According to the netinvestment site1. The investment fund BlackRock is, as I write, the largest investment fund in the world! With more than 9 trillion dollars in assets!
The fact that BlackRock is a large investment fund is reassuring. Indeed, this factor reduces the chances that BlackRock will be purchased by another investment fund.
The TER 💲
| TER | 👍 |
In order for an investment in an ETF to be profitable, it is mandatory that the Ter (investment fund commission) is minimal in order to optimize stock market returns.
➡️ In the majority of ETF strategies, iShares is consistently the cheapest ETF for TER👍
Here are 3 examples:
- SPI iShares (Swiss stock market) – 0.10% of TER
- Ishares Core IVV SP500 USA (US stock market) – 0.03% of TER
- iShares ACWV (global) – 0.20% of TER
Note that these commissions concerning management fees are very correct.. Comparable to the prices offered by Vanguard or UBS for example.
Performance 📈
| ETF performance vs. index | 👍 |
First, let's compare the stock performance of a stock index with an ETF. For example, the S&P 500 stock index and the IVV ETF which tracks the performance of the S&P 500 stock index.
👉 There is no difference. This is proof that iShares replication is excellent!
Now, let's compare 2 ETFs to analyze the performance over a 5-year period.
Let's start by analyzing an ETF that replicates the Swiss market. The SPI ETF.
- SPI UBS = 15.07% (March19 to March24)
- iShares SPI = 15.36% (Mar19 to Mar24)
In this case, although the ETF strategy is similar. SPI iShares has improved performance by 0.29% in 5 years.
Now, let's compare a strategy that replicates the SP500. The US stock market.
- iShares IVV – 99.88% (Mar19 to Mar24)
- Vanguard SUV – 99.91% (Mar19 to Mar24)
In this case, there is only 0.03% gained with Vanguard.
As we can see, iShares performance is respectable!
The dividends 💲
| Dividend Distribution | 👍 (4 times a year) |
iShares has a history of distributing dividends 4 times a year. Concerning the majority of ETFs!
In my opinion, I prefer to receive dividends 4 times a year in order to reinvest them as quickly as possible.
Choice of ETF's 📊
| ETF choice | 👍 |
👉 iShares has over 400 ETFs !
In reality, there is almost one ETF per stock market strategy, for example:
- Geographic area
- Replication of a stock index
- Best High Dividend Stocks
- Bitcoin ETF
- Emerging countries
👉 Therefore, choosing an ETF according to your stock market strategy should not be a problem. 😉
Additionally, there is a good variety between distributive ETFs and accumulative ETFs.
ETF's of US or Irish origin 🌎
| US ETFs | 👍 |
| Irish ETF | 👍 |
| ETF CH | 👌 |
👉 iShares allows you to invest in ETFs of US origin ✔. As well as ETFs of Irish origin ✔.
This is a good point depending on the country of your residence! Indeed, taxation can vary depending on the origin of an ETF.
Additionally, note that there are several iShares ETF choices for holding a stock market portfolio with only Swiss stocks.
Conclusion
Why choose iShares (BlackRock) as an ETF?
👉 Simply because BlackRock via iShares is an excellent investment fund. In any case, on the financial point.
Besides, I think iShares has everything an ETF should have!
To conclude, here is a table to summarize the iShares ETFs.
| Liquidity of the investment fund | 👍 |
| Diversification / Investment risk | 👍 |
| TER requested | 👍 |
| Performance | 👍 |
| Dividends | 4 times a year |
| Investment time | Less than 5 minutes per month |
| Choice of ETF's | 👍 |
| Origin ETF US | 👍 |
| Origin ETF Ireland | 👍 |
| Origin ETF Switzerland | 👌 (only SPI and CHDIV) |
▶️ In my opinion, the only mutual fund comparable to BlackRock is Vanguard. I think both are excellent regarding ETFs 😊
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