Providing investors a differentiated income
strategy which couples high income potential with long term
growth
BlackRock today announced the launch of the BlackRock Advantage
Large Cap Income ETF (Cboe: BALI), which seeks to generate a high
level of monthly income with upside market participation1 to
optimize income and growth within a risk managed framework.
The actively managed ETF provides investors with greater access
to the breadth of BlackRock's active investment platform, which
combines the big data-empowered insights of BlackRock's Systematic
portfolio management team alongside premium income streams.
“In the face of turbulent market conditions, we continue to see
more client demand for active ETF strategies,” said Rachel
Aguirre, U.S. Head of iShares Product at BlackRock. "As a
powerful addition to our active ETF lineup, BALI is another
testament to the firm’s ability to match our unparalleled expertise
in ETFs with seasoned portfolio managers to meet our clients’
evolving needs."
“BALI also marks the latest offering in our growing suite of
options-based ETFs which includes fixed income BuyWrite strategies
and buffer strategies, reflecting the growing demand for solutions
that help investors achieve specific outcomes. The Fund furthers
our commitment to providing choice and enhancing access to innovate
solutions for our clients.”
Unique offering with high income potential and long-term
market appreciation
The Fund provides investors income from two sources – a dynamic
basket of U.S. dividend-paying stocks and option premiums from
selling call options on the S&P 500 Index.
Managed by a portfolio team led by Raffaele Savi, Global Head of
BlackRock Systematic and Co-CIO and Co-Head of Systematic Active
Equity, BALI combines its income strategy while deploying a
flexible process in managing market exposure, enabling investors to
maintain upside market participation in market rallies, while
seeking to generate option premium income. This helps investors
seek high current income and potentially benefit from long-term
market appreciation.
“As investors seek new solutions to achieve clearer outcomes in
their portfolio, BALI offers differentiated income and returns that
complement traditional asset classes through a unique and
disciplined investment process,” said Raffaele Savi. “The
Fund takes an innovative approach to product construction by
combining the power of big data, data science and deep investor
expertise to seek to deliver high current income and long-term
growth opportunity.”
With over 35 years of experience, BlackRock Systematic Investing
is an investment approach that emphasizes data-driven insights,
scientific testing of investment ideas, and disciplined portfolio
construction techniques that focuses on varied investment outcomes.
Our Systematic strategies are built on the principle of leveraging
data and technology to seek differentiated excess returns, robust
risk management, and portfolio optimization.
BALI exemplifies BlackRock’s commitment to the fast-growing
active ETF category and is reflective of the firm’s deep
understanding of market trends, risk management and investor’s
needs.
As demand for active ETF strategies continue to grow, BlackRock
is uniquely positioned to deliver liquidity, tax efficiency, and
alpha in the convenience and accessibility of the ETF wrapper. With
over 1,000 ETFs and mutual funds in the U.S.2, BlackRock provides
clients with a comprehensive and complementary set of 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 | 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 1300+ exchange traded funds (ETFs) and $3.21
trillion in assets under management as of June 30, 2023, iShares
continues to drive progress for the financial industry. iShares
funds are powered by the expert portfolio and risk management of
BlackRock.
Important Information
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.
When the Fund sells call options on a large cap equity index, it
receives a premium but it takes on the risk that these options may
reduce any profit from increases in the market value of the long
equity positions held by the Fund. Any such reduction in profits
would be the difference between the payoff of the call option and
the premium received. The Fund would also retain the risk of loss
if the long equity positions decline in value. The premiums
received from the options may not be sufficient to offset any
losses sustained from the long equity positions. Factors that may
influence the value of the options generally include the underlying
asset’s price, interest rates, dividends, the actual and implied
volatility levels of the underlying asset’s price, and the
remaining time until the options expire, among others. The value of
the options written by the Fund typically do not increase or
decrease at the same rate as the underlying asset’s price on a
day-to-day basis due to these factors.
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.
Fixed income risks include interest-rate and credit risk.
Typically, when interest rates rise, there is a corresponding
decline in the value of debt securities. Credit risk refers to the
possibility that the debt issuer will not be able to make principal
and interest payments.
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 iShares and BlackRock Funds are distributed by BlackRock
Investments, LLC (together with its affiliates, “BlackRock”).
©2023 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 As compared to minimum
volatility equity strategies; according to data from BlackRock,
September 2023. Upside market participation could potentially offer
market appreciation in the long run. 2 Source: BlackRock, September
2023
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version on businesswire.com: https://www.businesswire.com/news/home/20230928708687/en/
Media Joanna Yau
joanna.yau@blackrock.com 646-310-1116
Jenna Merchant jenna.merchant @blackrock.com 646-231-1866
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