BlackRock expanded access to its award-winning investment platform with the launch of two active ETFs managed by Rick Rieder and Tony DeSpirito. This milestone provides clients with the best of BlackRock’s investment insights in a liquid, transparent, and tax-efficient ETF wrapper.

Alpha-seeking expertise, accessible through ETFs

Alpha is at the heart of BlackRock, starting as an active bond manager in 1988. Since the firm’s founding, clients have continued to turn to BlackRock’s active platform to seek to capture investment opportunities and manage risk. In the first quarter of 2023, clients entrusted the firm with approximately $68 billion of active net inflows.¹

In addition, BlackRock has a strong track record of delivering alpha. 90% and 81% of BlackRock’s actively managed taxable fixed income and fundamental equity assets under management, respectively, have outperformed the benchmark or peer median over the last five years.²

BlackRock Flexible Income ETF (BINC)

BINC aims to deliver long-term income by primarily allocating to harder-to-reach fixed income sectors, such as high yield, emerging markets debt and securitized assets. The fund is designed to complement core bond exposures and leverages the scale of BlackRock’s $2.7 trillion Fixed Income platform, providing clients with unparalleled market access.³

“Our core investment approach is simple: make a little bit of money a lot of times,” said Rieder, CIO of Global Fixed Income at BlackRock and winner of the 2023 Morningstar Outstanding Portfolio Manager Award. “By staying active, agile, and well-diversified, the BlackRock Flexible Income ETF aims to capture historic opportunities across fixed income markets whenever and wherever they become available.”

BlackRock Large Cap Value ETF (BLCV)

BLCV seeks to maximize total return by investing in U.S. large-cap value companies. The fund provides investors with a differentiated product offering from BlackRock’s Income & Value team, led by DeSpirito, and harnesses the expertise of BlackRock’s $220 billion Fundamental Equities platform.⁴

“Active investment management is essential to navigating today’s market volatility,” said DeSpirito, Global CIO of Fundamental Equities at BlackRock. “By seeking alpha through the ETF wrapper, we can build liquid and transparent portfolios while digging deep in an effort to uncover investment winners for our clients.”

Providing clients with choice and flexibility

Active ETFs currently have $402 billion in assets under management, with a 54% compound annual growth rate over the last three years.⁵ Demand has been particularly strong among fee-based advisers using model portfolios, who are turning to ETFs to efficiently access an expanding world of investments.

“BlackRock has a strong foundation in active ETFs, with $13 billion in assets under management across 20 BlackRock ETFs,”⁶ said Rachel Aguirre, Head of U.S. iShares Product at BlackRock. “Today’s launches broaden BlackRock’s active ETF lineup from specialized exposures to active building blocks for the core of investors’ portfolios, opening an important new avenue of choice for clients who no longer have to decide between active management and ETFs.”

BlackRock is uniquely positioned to deliver liquidity, tax efficiency, and now alpha in the convenience and accessibility of the ETF wrapper. With over 1,000 ETFs and mutual funds in the U.S., BlackRock provides clients with comprehensive and complementary portfolio tools across active and index strategies in their wrapper of choice.

Source: BlackRock