First ETFs Managed by BlackRock’s Strategic
Equity and High Yield Teams
Today, BlackRock expanded access to its alpha-seeking expertise
with the launch of the BlackRock Long-Term U.S. Equity ETF (Nasdaq:
BELT) and the BlackRock High Yield ETF (Nasdaq: BRHY). These
launches reinforce BlackRock’s commitment to delivering liquidity,
tax efficiency, and alpha in the convenience of an ETF.
“Active ETFs are becoming an integral part of investor
portfolios around the world, with financial advisors increasingly
incorporating them into their models-based practice,” said
Jessica Tan, Head of Americas for Global Product Solutions at
BlackRock. “As a fiduciary, we’re listening to our clients and
creating new products and capabilities to meet their needs. We are
excited for the journey ahead and look forward to decades of
innovation to come.”
Evolving market conditions and changes in distribution dynamics
have catalyzed the growth of active ETFs. For example, registered
investment advisors are using active ETFs as building blocks in
model portfolios, accounting for nearly 50% of all active ETF
assets, up from 31% in 2019.1 In addition, active ETFs enable
portfolio managers to react to changing market conditions,
providing flexibility to adjust their holdings as they seek to
outperform benchmarks or target certain investment outcomes.
Alpha-seeking expertise, accessible through ETFs
As adoption continues to grow, BlackRock has nearly doubled its
number of active ETFs in the past year, managing $25 billion in
assets under management (AUM) across 40 active ETFs in the
U.S.2
BlackRock has a strong track record of delivering alpha, with
93% and 79% of BlackRock’s actively managed taxable fixed income
and fundamental equity AUM, respectively, outperforming the
benchmark or peer median over the last five years.3 In addition, in
the first quarter of 2024, clients entrusted BlackRock with $15
billion of active net inflows globally, generating positive active
flows in 17 of 21 quarters since 2019.4
Fund Name
Ticker
Performance Benchmark
Portfolio Managers
BlackRock Long-Term U.S. Equity ETF
BELT
S&P 500 Index
Alister Hibbert
Michael Constantis
BlackRock High Yield ETF
BRHY
Bloomberg U.S. Corporate High Yield 2%
Issuer Capped Index
David Delbos
Mitchell Garfin
BlackRock Long-Term U.S. Equity ETF (BELT)
BELT seeks long-term growth by investing in a high conviction
portfolio of U.S. equities. The investment team focuses on a
company’s ability to sustain high returns, its reinvestment
opportunity, and its ability to differentiate itself from the
competition over the long-term. This fundamentally driven
investment process results in a concentrated portfolio of 20 to 25
positions that the investment team believes can compound growth in
a way that is underappreciated by the market.
“To generate compelling returns in public equities, we believe a
long-term approach is required,” said Alister Hibbert, Head of
BlackRock's Strategic Equity Team and Fundamental Equity Alpha
Manager Hall of Fame. “True business value is unlocked over years,
not quarters; and companies that can deliver high returns over time
are often undervalued by the market today. A high-conviction
strategy like BELT is essential to helping investors capture this
significant alpha opportunity.”
Managed by Alister Hibbert and Michael Constantis, BELT benefits
from the global expertise of BlackRock’s $238 billion Fundamental
Equities platform.5 The portfolio managers also run the BlackRock
Unconstrained Equity Fund.
BlackRock High Yield ETF (BRHY)
Managed by David Delbos and Mitchell Garfin, BRHY has the same
investment objective, benchmark, and portfolio managers as the
BlackRock High Yield Fund. The Fund aims to maximize total return
by investing primarily in non-investment grade bonds with
maturities of 10 years or less. BRHY leverages the scale of
BlackRock’s $2.8 trillion Fixed Income platform, providing clients
with unparalleled market access.6
“A nimble investment approach is essential to navigating today’s
shifting credit conditions,” said David Delbos, Co-Head of U.S.
Leveraged Finance at BlackRock. “By delivering alpha
opportunities through the ETF wrapper, we aim to capture the upside
in rallying markets while protecting assets when high yield markets
decline.”
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.
Alpha is a measure of performance on a risk-adjusted basis.
Alpha takes the volatility (price risk) of a mutual fund and
compares its risk-adjusted performance to a benchmark index. The
excess return of the fund relative to the return of the benchmark
index is a fund's alpha.
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.
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. Buying and selling shares of
ETFs may result in brokerage commissions.
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. This material does not constitute any
specific legal, tax or accounting advice. Please consult with
qualified professionals for this type of advice.
The BlackRock Funds are not sponsored, endorsed, issued, sold or
promoted by Bloomberg or S&P Dow Jones Indices LLC. Neither of
these companies make any representation regarding the advisability
of investing in the Funds. BlackRock is not affiliated with the
companies listed above.
The iShares and BlackRock Funds are distributed by BlackRock
Investments, LLC (together with its affiliates, “BlackRock”).
©2024 BlackRock, Inc. or its affiliates. All rights reserved.
iSHARES and BLACKROCK are trademarks of BlackRock,
Inc. or its affiliates. All other trademarks are those of their
respective owners.
____________________ 1 Source: Broadridge Global Market
Intelligence as of Dec. 31, 2023. In 2023, Registered Investment
Advisors in the U.S. had total net assets in active ETFs of $233.6
billion, or about 48% of the total industry net assets of active
ETFs, the largest percentage out of any other group, including
banks, broker-dealers, discount platforms, and wirehouses. 2
BlackRock as of June 18, 2024 3 BlackRock Q1 2024 Earnings, as of
March 31, 2024. Past performance is not indicative of future
results. For more information, see page 2 of BlackRock’s Q1-24
Earnings Release. 4 BlackRock Q1 2024 Earnings, as of March 31,
2024. 5 BlackRock, as of March 2024 6 BlackRock, as of March
2024
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240618727079/en/
Media Paige Hofman
Paige.hofman@blackrock.com 212-810-3368
Andreia Cheong-A-Shack andreia.cheongashack@blackrock.com
646-634-5568
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