Three New Transparent Actively Managed ETFs and an Index ETF Offer Client Choice and Flexibility to Access BlackRock's Best Thinking on Long-Term, Transformative Growth Trends
First Active Transparent ETFs from BlackRock's Fundamental Active Equity Portfolio Managers
To help clients seek exposure to these transformative forces, BlackRock is expanding its Megatrend suite by introducing three active transparent exchange traded funds (ETFs) managed by experienced investors from BlackRock's Fundamental Active Equity franchise and one index-tracking ETF. The funds are designed to provide unique exposure to technology and healthcare innovation.
Active Transparent ETFs:
*BlackRock Future Health ETF(NYSE:BMED): Provides access to innovative and emerging companies in the healthcare sector
- Lead Portfolio Manager:
- Reference Benchmark: MSCI All Country World Index (ACWI)
*BlackRock Future Tech ETF (NYSE:BTEK): Invests in companies developing innovative and emerging technologies in the technology sector
- Lead Portfolio Manager:
- Reference Benchmark: MSCI All Country World Index (ACWI)
*BlackRock Future Innovators ETF (NYSE:BFTR): Offers exposure to innovative companies across sectors in the small/mid cap growth category
- Lead Portfolio Manager:
- Reference Benchmark: Russell 2500 Growth
Index-Tracking ETF:
*iShares Virtual Work and Life Multisector ETF (NYSE:IWFH): Seeks to track an index of developed and emerging market companies that provide products, services and technologies that empower individuals to work remotely, and support an increasingly virtual way of life.
- Index: NYSE FactSet Global Virtual Work and Life Index
"Megatrends are driving the world's economic, social and technological transformation, presenting tremendous investment opportunities and investor demand. We are still in the early days of growth for these funds. iShares projects that the megatrend category is projected to grow 500% to
Industry-Leading Alpha Seeking Expertise Accessible Through ETFs
BlackRock's Active Equity platform delivers the combination of human insight with the power of the firm's technology and risk platforms, along with the benefit of fundamental and quantitative global research and expertise in trading and market intelligence.
"The ability to innovate and capture disruption caused by innovation are critical to the success of active investors. Through these funds, our portfolio managers will be able to focus on secular changes disrupting our economy without being constrained by industries and sectors," said
The managers for BMED, BTEK and BFTR bring six decades of combined experience and demonstrated ability to generate alpha by deploying high conviction strategies informed by the evaluation of the financial prospects of companies, analysis of market behavior and exploitation of market trends. They are responsible for more than
Expanding Choice and Flexibility to Meet Client Needs
The launch of these four ETFs today are representative of the unique combination of capabilities and expertise in stock selection, ETF infrastructure, analytics and portfolio modeling that BlackRock leverages to deliver choice and flexibility to clients.
BlackRock's commitment to helping clients build better financial futures is further represented through a commitment to launch active ETFs when the exposures are believed to add value for clients, have clear alpha potential and complement existing active and index ETFs and mutual funds.
"Because we offer a full spectrum of funds, we focus on delivering our capabilities in ways that seek to maximize the benefit to our clients. Today's introduction of active and index ETFs is another example of that," said
Comparing Index and Active ETFs
Traditional index ETFs seek to track an index, typically constructed by a third-party index-provider, and reallocate at a pre-determined time period (e.g. on a semi-annual or annual basis). Index ETFs publish holdings daily, and the goal of the fund is to deliver returns in-line with their stated benchmark.
Transparent active ETFs also publish holdings daily, but do not seek to track a specific index and have a stated objective of maximizing income, long-term capital appreciation or total return. Investment decisions are made by BlackRock active portfolio managers, who use their IP to make changes to holdings within the ETF in accordance with the fund's objective- therefore, the frequency in which holdings change will vary.
About BlackRock's Actively Managed ETFs
BlackRock's preexisting lineup of actively managed ETFs includes:
- BlackRock
- iShares Short Maturity Municipal Bond ETF (MEAR)
- iShares Short Maturity Bond ETF (NEAR)
About the Portfolio Managers:
Dr.
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About iShares
iShares unlocks opportunity across markets to meet the evolving needs of investors. With more than twenty years of experience, a global line-up of 900+ exchange traded funds (ETFs) and
The Morningstar Analyst Rating (i) should not be used as the sole basis in evaluating a fund, (ii) involves unknown risks and uncertainties which may cause Analyst expectations not to occur or to differ significantly from what they expected, and (iii) should not be considered an offer or solicitation to buy or sell the fund.
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.
Funds that concentrate investments in specific industries, sectors, markets or asset classes may underperform or be more volatile than other industries, sectors, markets or asset classes and the general securities market. Small-capitalization companies may be less stable and more susceptible to adverse developments, and their securities may be more volatile and less liquid than larger capitalization companies. Technology companies may be subject to severe competition and product obsolescence.
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.
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