First active ETFs managed by Rick Rieder and
Tony DeSpirito
Leverages full-breadth of BlackRock’s
alpha-seeking expertise and ETF capabilities to deliver choice,
transparency, and flexibility to clients
Today, 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
Fund Name
Ticker
Performance Benchmark
Lead Portfolio Manager
BlackRock Flexible Income ETF
BINC
Bloomberg U.S. Universal Index
Rick Rieder
BlackRock Large Cap Value ETF
BLCV
Russell 1000 Value Index
Tony DeSpirito
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.
About BlackRock
BlackRock’s purpose is to help more and more people experience
financial well-being. As a fiduciary to investors and a leading
provider of financial technology, we help millions of people build
savings that serve them throughout their lives by making investing
easier and more affordable. For additional information on
BlackRock, please visit www.blackrock.com/corporate
Carefully consider the Funds' investment objectives, risk
factors, and charges and expenses before investing. This and other
information can be found in the Funds' prospectuses or, if
available, the summary prospectuses which may be obtained by
visiting www.iShares.com or
www.blackrock.com. Read the prospectus carefully before
investing.
Investing involves risk, including possible loss of
principal.
Fixed income risks include interest-rate and credit risk.
Typically, when interest rates rise, there is a corresponding
decline in bond values. Credit risk refers to the possibility that
the bond issuer will not be able to make principal and interest
payments. Non-investment-grade debt securities (high-yield/junk
bonds) may be subject to greater market fluctuations, risk of
default or loss of income and principal than higher-rated
securities. There may be less information on the financial
condition of municipal issuers than for public corporations. The
market for municipal bonds may be less liquid than for taxable
bonds. Some investors may be subject to federal or state income
taxes or the Alternative Minimum Tax (AMT). Capital gains
distributions, if any, are taxable. Securities with floating or
variable interest rates may decline in value if their coupon rates
do not keep pace with comparable market interest rates. The Fund’s
income may decline when interest rates fall because most of the
debt instruments held by the Fund will have floating or variable
rates. An investment in the Fund is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other government
agency and its return and yield will fluctuate with market
conditions.
Collatoralized Debt Obligations ("CDOs") carry additional risks
including, but not limited to: (i) the possibility that
distributions from collateral securities will not be adequate to
make interest or other payments; (ii) the risk that the collateral
may default or decline in value or be downgraded, if rated by a
nationally recognized statistical rating organization; (iii) the
Fund may invest in tranches of CDOs that are subordinate to other
tranches; (iv) the lack of a readily available secondary market for
CDOs. Asset-backed securities are subject to credit, interest rate,
call, extension, valuation and liquidity risk and are subject to
the risk of default on the underlying asset or mortgage,
particularly during periods of economic downturn. Small movements
in interest rates may quickly and significantly reduce the value of
certain ABS. Mortgage-backed securities ("MBS") and commercial
mortgage-backed securities ("CMBS") are subject to prepayment and
extension risk and therefore react differently to changes in
interest rates than other bonds. Small movements in interest rates
may quickly and significantly reduce the value of certain
mortgage-backed securities.
International investing involves risks, including risks related
to foreign currency, limited liquidity, less government regulation
and the possibility of substantial volatility due to adverse
political, economic or other developments. These risks often are
heightened for investments in emerging/developing markets and in
concentrations of single countries. A fund's use of derivatives may
reduce a fund's returns and/or increase volatility and subject the
fund to counterparty risk, which is the risk that the other party
in the transaction will not fulfill its contractual obligation. A
fund could suffer losses related to its derivative positions
because of a possible lack of liquidity in the secondary market and
as a result of unanticipated market movements, which losses are
potentially unlimited. There can be no assurance that any fund's
hedging transactions will be effective.
Actively managed funds do not seek to replicate the performance
of a specified index. Actively managed funds may have higher
portfolio turnover than index funds. Convertible securities are
subject to the market and issuer risks that apply to the underlying
common stock.
Funds that concentrate investments in specific industries,
sectors, markets or asset classes may underperform or be more
volatile than other industries, sectors, markets, asset classes or
the general securities market.
Diversification and asset allocation may not protect against
market risk or loss of principal. Buying and selling shares of ETFs
may result in brokerage commissions. There can be no assurance that
an active trading market for shares of an ETF will develop or be
maintained.
This information should not be relied upon as research,
investment advice, or a recommendation regarding any products,
strategies, or any security in particular. This material is
strictly for illustrative, educational, or informational purposes
and is subject to change.
The Funds are distributed by BlackRock Investments, LLC
(together with its affiliates, “BlackRock”).
© 2023 BlackRock, Inc. or its affiliates. All Rights Reserved.
BLACKROCK and iSHARES are trademarks of BlackRock,
Inc. or its affiliates. All other trademarks are those of their
respective owners.
1 BlackRock Q1 2023 Earnings, as of March 31, 2023 2 BlackRock
Q1 2023 Earnings, as of March 31, 2023. Past performance is not
indicative of future results. For more information, see BlackRock’s
Q1-23 Earnings Release. 3 BlackRock Q1 2023 Earnings, as of March
31, 2023 4 BlackRock, as of March 2023 5 Simfund, as of April 2023
6 BlackRock, as of May 2023
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version on businesswire.com: https://www.businesswire.com/news/home/20230523005202/en/
Media Contacts
Paige Hofman Paige.hofman@blackrock.com 212-810-3368
Jelena Nedelka Jelena.nedelka@blackrock.com 646-864-7752
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