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BlackRock Rebrands Three Alpha-Seeking Actively Managed ETFs To Help Investors Better Navigate Fund Offerings

·9-min read
  • All alpha-seeking active ETFs will be BlackRock branded and all index-based ETFs will remain iShares branded

BlackRock’s commitment to helping clients build better financial futures is underscored today in the renaming of three alpha-seeking, actively managed exchange traded funds (ETFs). Previously branded iShares, the BlackRock Short Maturity Bond ETF (NEAR); BlackRock Short Maturity Municipal Bond ETF (MEAR); and BlackRock Ultra Short-Term Bond ETF (ICSH), now carry the BlackRock brand to reflect the firm’s premier active management investment platform. There will be no impact to the funds’ investment objectives, tickers, CUSIPs, total expense ratios or share prices.

Going forward, new alpha-seeking active ETFs will be BlackRock branded and new index-based ETFs will be iShares branded. These changes demonstrate the firm’s commitment to help clients better navigate its product offerings and the breadth of BlackRock’s investment platform.

"Alongside BlackRock’s proud tradition of active management, iShares has served as the beacon of index investing innovation and revolutionized exchanged traded products for over two decades," said Armando Senra, Head of iShares Americas, BlackRock. "With more than 900 ETPs globally, differentiating our alpha-seeking and index-based offerings with clearly delineated branding is an important step in delivering transparency to our clients. We are committed to launching new active strategies when we believe the exposures will add value for clients and have clear alpha potential.

BlackRock’s suite of alpha-seeking actively managed ETFs is presently comprised of seven funds, representing more than $9.8 billion1. In October 2020, BlackRock expanded its Megatrends suite by introducing three alpha-seeking ETFs actively managed by experienced portfolio managers from BlackRock’s Fundamental Active Equity franchise. The funds are designed to provide unique exposure to the structural shifts influencing the future of the global economy.

BlackRock Rebrands Three Alpha-Seeking Actively Managed ETFs:

Original Fund Name

Updated Fund Name

Ticker

Portfolio Manager

iShares Short Maturity Bond ETF

BlackRock Short Maturity Bond ETF

Cboe BZX:NEAR

Scott MacLellan

iShares Short Maturity Municipal Bond ETF

BlackRock Short Maturity Municipal Bond ETF

Cboe BZX:MEAR

Kristi Manidis

iShares Ultra Short-Term Bond ETF

BlackRock Ultra Short-Term Bond ETF

Cboe BZX:ICSH

Richard Mejzak

Existing BlackRock Branded Alpha-Seeking Actively Managed ETFs

Fund Name

Ticker

Portfolio Manager

BlackRock Future Health ETF

NYSE:BMED

Erin Xie, PhD

BlackRock Future Tech ETF

NYSE:BTEK

Tony Kim

BlackRock Future Innovators ETF

NYSE:BFTR

Phil Ruvinsky

BlackRock U.S. Equity Factor Rotation ETF

NYSE:DYNF

Philip Hodges

Comparing Index-based and Alpha-Seeking Actively Managed ETFs

Traditional index-based ETFs seek to track an index, typically constructed by a third-party index-provider, and reballanced 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.

Alpha-seeking actively managed ETFs also publish holdings daily, but do not seek to track a specific index and have a stated objective maximizing income, long-term capital appreciation or total return. Investment decisions are made by BlackRock active portfolio managers, who make changes to holdings within the ETF in line with the investment strategy and in pursuit of meeting the fund's objective – therefore, the frequency in which holdings change may vary.

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, our clients turn to us for the solutions they need when planning for their most important goals. As of September 30, 2020, the firm managed approximately $7.81 trillion in assets on behalf of investors worldwide. For additional information on BlackRock, please visit www.blackrock.com/corporate.

Twitter: @blackrock | LinkedIn: www.linkedin.com/company/blackrock.

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 $2.32 trillion in assets under management as of September 30, 2020, iShares continues to drive progress for the financial industry. iShares funds are powered by the expert portfolio and risk management of BlackRock, trusted to manage more money than any other investment firm2.

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.

The BlackRock funds are actively managed and their characteristics will vary.

The Funds are actively managed and do not seek to replicate the performance of a specified index. The Funds may have a higher portfolio turnover than funds that seek to replicate the performance of an index.

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 or in concentrations of single countries.

The Fund's use of derivatives may reduce the 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. The 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 the Fund's hedging transactions will be effective.

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.

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.

The Fund's use of derivatives may reduce the 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. The 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 the Fund's hedging transactions will be effective.

Real estate investment trusts ("REITs") are subject to changes in economic conditions, credit risk and interest rate fluctuations. 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.

Securities issued in IPOs have no trading history, and information about the companies may be available for very limited periods. In addition, the prices of securities sold in IPOs may be highly volatile or may decline shortly after the IPO.

The iShares Short Maturity Bond ETF will invest in privately issued securities that have not been registered under the Securities Act of 1933 and as a result are subject to legal restrictions on resale. Privately issued securities are not traded on established markets and may be illiquid, difficult to value and subject to wide fluctuations in value. Delay or difficulty in selling such securities may result in a loss to the iShares Short Maturity Bond ETF. The fund may invest in asset-backed ("ABS") and mortgage-backed securities ("MBS") which are subject to credit, prepayment and extension risk, and react differently to changes in interest rates than other bonds. Small movements in interest rates may quickly reduce the value of certain ABS and MBS.

The Fund is not a money market fund and is not subject to the strict rules that govern the quality, maturity, liquidity and other features of securities that money market funds may purchase. Under normal circumstances, the Fund’s investments may be more susceptible than a money market fund is to credit risk, interest rate risk, valuation risk and other risks relevant to the Fund’s investments. The Fund does not seek to maintain a stable net asset value of $1.00 per share. The Fund will hold securities with floating or variable interest rates which may decline in value if their coupon rates do not reset as high, or as quickly, as comparable market interest rates. Although floating rate notes are less sensitive to interest rate risk than fixed rate securities, they are subject to credit and default risk, which could impair their value.

The Funds are distributed by BlackRock Investments, LLC (together with its affiliates, "BlackRock").

The iShares Funds are not sponsored, endorsed, sold or promoted by ICE Data Services, LLC, nor does this company make any representation regarding the advisability of investing in the Funds. BlackRock is not affiliated with ICE Data Services, LLC.

©2020 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are trademarks of BlackRock, Inc., or its subsidiaries in the United States and elsewhere. All other marks are the property of their respective owners.

1 BlackRock, AUM as of 11/23/20

2 Based on $7.81 trillion in AUM as of 9/30/20

View source version on businesswire.com: https://www.businesswire.com/news/home/20201202005234/en/

Contacts

Sally Lyden – Sally.Lyden@BlackRock.com – +1.646.647.4875