INTERNATIONAL INVESTMENT MANAGEMENT COMPANY ISHARES-BLACK ROCK AND ITS MAIN ETFS

Abstract

The article is devoted to a comprehensive analysis of the activities of the international investment management company iShares-BlackRock and its leading exchange-traded funds (ETFs) as instruments of global redistribution of financial resources. The paper reveals the theoretical and methodological foundations of ETFs, which combine index tracking of benchmarks with intraday liquidity. The theoretical section of the article systematizes the differences between mutual funds, index funds, and ETFs: mutual funds as an “umbrella” format for collective investments with the calculation of net asset value at the end of the day; index funds as a subset of mutual funds that passively replicate benchmarks; ETFs as predominantly index instruments that trade throughout the trading day at market price, providing intraday liquidity and, in a number of jurisdictions, tax efficiency. On this basis, the main types of ETFs are classified as follows: equity (broad, country, regional, sector), bond (government, corporate, municipal, with different maturities and credit quality), commodity (physical metals or futures curves), currency (single currencies and baskets), thematic/factor (AI, green energy; value, growth, low volatility), as well as inverse and leveraged—as a separate class of more complex instruments that require a higher level of risk management. At the empirical level, factual material on iShares products is summarized, which is illustrated in the study with examples of “core” funds for large indices (iShares Core S&P 500 ETF, IVV), global diversification (MSCI ACWI, through the corresponding iShares funds), emerging markets (MSCI Emerging Markets, EEM), countries (MSCI India, INDA), sector strategies (iShares U.S. Real Estate ETF, IYR; iShares S&P 500 Growth ETF, IVW), as well as thematic solutions (iShares Blockchain Technology UCITS ETF). Overall, the results of the article confirm the initial hypothesis: iShares-BlackRock, thanks to its scale, product diversity, and operational practices, acts as a key channel for capital intermediation between investors and underlying markets, and its fund solutions, when used in a scientifically sound manner, can increase the efficiency, manageability, and stability of long-term investment portfolios in the volatile environment of the global economy.