BlackRock Expands Active ETF Suite with Fixed Income Enhanced UCITS ETFs

Jane Sloan, EMEA Head of iShares & Global Product Solutions at BlackRock

• Leverages the expertise of BlackRock’s pioneering $300+ billion Systematic investment platform
• Provides access to low-cost, fixed income building blocks to add alpha at the core of portfolios, with limited tracking error

iShares $ Corp Bond Enhanced Active UCITS ETF

iShares € Corp Bond Enhanced Active UCITS ETF

The range combines BlackRock’s leading active management expertise with the breadth and scale of iShares, the world leader in ETFs.

The strategies leverage the expertise of BlackRock’s pioneering $300+ billion Systematic investment platform, with 40 years of experience, to uncover the insights that drive future returns. The team’s investment process combines the power of big data and advanced technologies with human expertise to deliver predictable and repeatable alpha.

“The ongoing market backdrop has prompted investors to rethink the role of fixed income in their portfolios to capture the attractive income opportunity we see today,” said Jeffrey Rosenberg, Senior Portfolio Manager, Systematic Fixed Income at BlackRock. “Our robust investment process allows us to identify and tilt towards bonds with attractive spreads to deliver more attractive risk-adjusted returns than broad investment grade indices and active managers, at the same time as our quality screening approach helps to reduce downside risks.”

The new funds are devised to deliver the most efficient use of risk budget by taking hundreds of small, evidence-based positions to minimise unwanted risks (sector, duration) and achieve high information ratios.

This disciplined approach can be used to complement existing core index strategies or to diversify investment styles against a backdrop of volatile markets.

The enhanced fixed income investment methodology leverages a technology-driven process to analyze +3,000 issuers daily, focusing on higher credit quality companies trading at attractive valuations to target superior risk-adjusted and total returns.

“Investors continue to turn to iShares in their search for innovative ETF solutions and can now access an efficient toolkit across both index and active strategies to meet their financial goals,” said Jane Sloan, EMEA Head of iShares & Global Product Solutions at BlackRock. “Using Active ETFs as core active portfolio building blocks, investors are able to allocate to time tested sources of alpha to power their asset allocation.”