iShares Edge MSCI Europe Momentum Factor UCITS ETF

What this fund is

iShares Edge MSCI Europe Momentum Factor UCITS ETF is an exchange-traded fund (ETF) from iShares, traded under the ticker IEMD (ISIN IE00BG13YJ64). In a single purchase you get a diversified basket of holdings rather than a stake in just one business. In plain terms it is about owning small slices of companies, so you share in their growth when they do well — and their falls when they don't, focused on the European market. It follows the MSCI Europe index (passive investing): it tracks the market rather than relying on a manager, keeping running costs down, and its largest holdings include ASML HOLDING NV, HSBC HOLDINGS PLC and NOVARTIS AG. Spread across roughly 138 holdings (the ten largest ≈ 39.8%), no one position makes or breaks the fund.

Its biggest country exposures are ~26.6% United Kingdom, ~14.9% Switzerland and ~13.4% Spain. Its heaviest sectors are ~22.8% Financials and ~16.5% Health Care. Funds like this are commonly chosen by investors who want a regular cash income stream rather than reinvesting everything for growth. Its ongoing charge (TER) is 0.25% a year — about €25 a year on a €10,000 holding, taken automatically from the fund. It is a distributing share class — dividends are paid to you as cash rather than reinvested, and over the last year it paid out roughly 1.974874% (its trailing yield).

It holds the underlying investments directly (physical replication); it is domiciled in Ireland and UCITS-regulated, a European standard built to protect everyday investors and trades in EUR. Its price has swung about 17% over the past year, which describes how much its price tends to move rather than whether it is good. It launched in 2018. As with any investment, its value can go down as well as up, and past performance is not a guide to future results. (Fund data sourced from iShares.)