Today, BlackRock further develops its European active ETF offering with the launch of two funds: the iShares AI Innovation Active UCITS ETF (IART) and the iShares World Equity Factor Rotation UCITS ETF (FACT).
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Jane Sloan, EMEA Head of Global Product Solutions at BlackRock
- Expands existing AI funds with BlackRock’s first European fundamental strategy active ETF
- Builds upon BlackRock’s expansive factor UCITS ETF range with factor rotation active ETF managed by BlackRock’s Systematic Active Equity investment team
iShares AI Innovation Active UCITS ETF (IART)
iShares World Equity Factor Rotation UCITS ETF (FACT)
Jane Sloan, EMEA Head of Global Product Solutions at BlackRock said, “With the addition of these funds, BlackRock is able to offer European investors active ETFs across both systematic and fundamental investment strategies. The launch of an active ETF as part of our existing AI suite provides clients the choice to tailor their exposure using the wrappers that work best for them.”
The iShares AI Innovation Active UCITS ETF (IART) follows the same investment strategy as the BGF AI Innovation Fund, which launched in Europe in December 2024. IART builds upon BlackRock’s existing European AI suite, which also includes two index ETFs (the iShares AI Infrastructure UCITS ETF (AINF) and iShares AI Adopters & Applications UCITS ETF (AIAA)).
IART targets exposure across the entire AI value chain and is a relatively concentrated “best ideas” portfolio, consisting of 20-40 stocks. The ETF is actively managed by Tony Kim and Reid Menge who lead BlackRock’s Fundamental Equities Technology Group. The fund is listed on the LSE, Euronext and Xetra with a TER of 0.73%.
AI infrastructure related investments—spanning hardware, cloud computing, and chips, along with AI-powered applications, from virtual assistants to automated business solutions, are poised for substantial growth over the next decade, offering strategic opportunities for investors seeking innovation and long-term value.
| Product Name | iShares AI Innovation Active UCITS ETF |
| ISIN | IE000G0E83X3 |
| SEDOL | BPBKXC6 |
| Currency | GBP |
| Management Fee | 0.73 % |
BlackRock also launches today the iShares World Equity Factor Rotation UCITS ETF (FACT), a systematic investment strategy that seeks to outperform the broad global equity market by tactically allocating to historically rewarded factors using proprietary insights.
The new fund builds upon BlackRock’s expansive factor UCITS ETF range, offering investors seeking factor strategies with expanded choice of portfolio tools.
“We believe offering a global and dynamic style factor strategy can deliver diversified sources of return through the economic cycle,” said Ahmed Talhaoui, Head of the Blackrock Systematic Group (BSYS) for EMEA and APAC. “Through the combination of human insight, big data, and cutting-edge technologies, FACT will help investors access alpha opportunities by effectively allocating to those factors expected to outperform.”
Factors are broad and persistent drivers of market return and risk such as momentum, value or quality. Historically, they have delivered strong long-term returns at more favourable risk-return profiles. FACT aims to generate alpha through factor rotation by targeting diversified long-term style factor premiums and navigating short-term cyclicality through dynamic factor tilts.
Through bottom-up stock selection, the team evaluates each stock’s alpha potential and assesses whether the stock’s factor exposures align with the tactical outlook for each factor, following a systematic and data-driven process. The portfolio is then built by combining multiple factors with those stocks with higher exposure to more favourable factors given greater weight, helping mitigate short-term cyclicality and providing a robust strategy for challenging market environments.
The fund will vary its exposure over time, seeking to capture near-term alpha opportunities, with an estimated 150 – 250 holdings and an expected annual turnover > 100%. The ETF is actively managed by Philip Hodges, PhD, BlackRock’s Head of Investments for Factors and He Ren. The fund is listed on Euronext and Xetra and in the future on the LSE with a TER of 0.30%.
| Product Name | iShares World Equity Factor Rotation UCITS ETF |
| ISIN | IE0009Y1MQJ2 |
| Currency | USD |
| Management Fee | 0.30% |
Source: ETFWorld.co.uk
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