What is ivy Investments?
The investment giant iShares is investing in stock investments by buying stocks with borrowed money.
The company said it will invest $50 million in the stocks it owns, with another $100 million coming from its investment arm, iShares Russell 2000.
The new fund will be called ivyInvest.
In a statement on Thursday, the firm said it wants to “support the stock market and enhance its investment returns” by investing in stocks with low interest rates, low volatility and “excellent risk profiles”.
It said ivy will also invest in stocks that “have been the most undervalued over the past decade, or are undervalued in the short term”.
It will be the first time ivy has invested in a non-public sector.
The fund will only invest in companies that are underwritten by the firm.
The firm has a long history of investing in technology and consumer products.
The firm was once known as E.I. du Pont, and it owns a portfolio of companies with products including the e-commerce site Shopify and Amazon.com.
In 2012, it bought $500 million worth of shares in Microsoft’s Bing search engine, after it was one of the first companies to receive a $5 billion federal stimulus package.