BlackRock has added five new iShares equity enhanced active ETFs to its product range, claiming an “inflection point” in the asset management industry where active ETFs become integral to investor portfolios.
The launches include the iShares World Equity Enhanced Active UCITS ETF, iShares US Equity Enhanced Active UCITS ETF, iShares Europe Equity Enhanced Active UCITS ETF, iShares Emerging Markets Equity Enhanced Active UCITS ETF, and iShares Asia ex Japan Equity Enhanced Active UCITS ETF. They will be overseen by the systematic equity investment team, which holds over 37 years of experience.
Raffaele Savi, global head of BlackRock Systematic, said: “These exciting new launches build on over 10 years of experience in using cutting-edge technologies like AI, alternative data and machine learning to uncover the insights that drive future returns.”
The funds aim to meet a more “dynamic approach” by investors amid market and macroeconomic volatility, according to BlackRock, which calls for a broader range of investment strategies. The new funds aim to outperform their respective MSCI indices with a low tracking error. The world, emerging markets, and Asia ex Japan ETFs each have a total expense ratio of 0.3%, while the Europe ETF sits at 0.25% and the US 0.2%. Currently, iShares manages more than 14,000 funds for over 43 million investors.
Jane Sloan, EMEA head of iShares and global product solutions at BlackRock, said: “The active ETF industry is expected to reach $4trn by 2030 as investors seek efficient risk taking through ETFs in a way that is scalable and repeatable. We continue to innovate to deliver our clients unique strategies that can enhance their portfolios,.”
She added: “This ETF range can bring alpha seeking strategies to the core of client portfolios.”
This article first appeared in our sister publication, Portfolio Adviser.
