BlackRock's New ETF Hunts For Alpha Across Global Markets

BlackRock has launched a new actively managed ETF that offers dynamic exposure to developed international markets, excluding the U.S. The iShares International Equity Factor Rotation Active ETF IDYN, which debuted Monday, adds to the firm's growing suite of tactical, factor-oriented funds.

• IDYN ETF is the new kid on the block. Check its live prices here.

The fund seeks to identify and capitalize on emerging equity factor trends, including momentum, value, and low volatility, across developed markets outside the U.S. It employs a rules-based, top-down approach to evaluate macroeconomic environments and investor attitudes, shifting across factors based on prevailing market conditions.

Home bias, the over-weighting by investors of home equities over international diversification, remains a persistent theme in portfolio formation. IDYN aims to counteract this by allowing investors to adopt a sophisticated approach to global diversification, which not only introduces international exposure but also dynamically adjusts that exposure in real-time to changing market conditions.

Through this introduction, BlackRock aims to offer investors a differentiated international equity allocation that actively positions them for the most attractive factor exposures at any given point in time.

The new ETF complements the already established iShares U.S. Equity Factor Rotation ETF DYNF, which has gained significant attention since launch. DYNF has more than $21 billion in assets under management (AUM). Consistent inflows in this fund is driven substantially by its dynamic positioning along primary U.S. equity factors.

Similar to its U.S. equivalent, IDYN is actively managed and does not replicate a conventional index. Instead, it uses proprietary models to allocate capital across factor exposures in non-U.S. developed markets and attempts to generate alpha through tactical factor rotation.

The expense ratio carried by this fund is 0.40%.

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Image created using artificial intelligence via Midjourney.