BlackRock Bolsters Outcome-Oriented ETF Suite with Accelerated Return Strategy
BlackRock has launched the iShares Large Cap Accelerated ETF (TWOX), expanding its outcome-oriented ETF suite. The new ETF aims to provide approximately twice the upside price return of the iShares Core S&P 500 ETF (IVV) up to an approximate cap of 5.82%, while tracking IVV's downside price return when held for an entire outcome period.
The outcome-oriented ETFs market has grown significantly from $5bn to over $160bn in the past five years. TWOX represents BlackRock's first accelerated return-focused strategy, designed to help investors seek enhanced returns in a moderate growth environment. The ETF combines an underlying ETF with options to create an 'acceleration zone' for higher return potential.
The fund has an expense ratio of 0.53% (gross) and 0.50% (net), with a fee waiver in effect until November 2030. The outcome period resets quarterly, during which the cap will adjust according to market conditions.
BlackRock ha lanciato il iShares Large Cap Accelerated ETF (TWOX), ampliando la sua gamma di ETF orientati ai risultati. Il nuovo ETF mira a fornire circa il doppio del rendimento del prezzo al rialzo dell'iShares Core S&P 500 ETF (IVV) fino a un limite approssimativo del 5,82%, seguendo il rendimento del prezzo al ribasso di IVV quando detenuto per un intero periodo di risultato.
Il mercato degli ETF orientati ai risultati è cresciuto significativamente, passando da 5 miliardi a oltre 160 miliardi di dollari negli ultimi cinque anni. TWOX rappresenta la prima strategia di ritorno accelerato di BlackRock, progettata per aiutare gli investitori a cercare rendimenti migliorati in un ambiente di crescita moderata. L'ETF combina un ETF sottostante con opzioni per creare una 'zona di accelerazione' per un potenziale di rendimento più elevato.
Il fondo ha un rapporto spese dello 0,53% (lordo) e dello 0,50% (netto), con un'esenzione dalle commissioni in vigore fino a novembre 2030. Il periodo di risultato si resetta trimestralmente, durante il quale il limite si adeguerà secondo le condizioni di mercato.
BlackRock ha lanzado el iShares Large Cap Accelerated ETF (TWOX), ampliando su gama de ETF orientados a resultados. El nuevo ETF tiene como objetivo proporcionar aproximadamente el doble del rendimiento del precio al alza del iShares Core S&P 500 ETF (IVV) hasta un límite aproximado del 5.82%, mientras sigue el rendimiento del precio a la baja de IVV cuando se mantiene durante todo un período de resultado.
El mercado de ETF orientados a resultados ha crecido significativamente, de $5 mil millones a más de $160 mil millones en los últimos cinco años. TWOX representa la primera estrategia de retorno acelerado de BlackRock, diseñada para ayudar a los inversores a buscar rendimientos mejorados en un entorno de crecimiento moderado. El ETF combina un ETF subyacente con opciones para crear una 'zona de aceleración' para un mayor potencial de rendimiento.
El fondo tiene una relación de gastos del 0.53% (bruto) y del 0.50% (neto), con una exención de tarifas en vigor hasta noviembre de 2030. El período de resultado se reinicia trimestralmente, durante el cual el límite se ajustará de acuerdo con las condiciones del mercado.
블랙록이 iShares Large Cap Accelerated ETF (TWOX)를 출시하며 결과 지향적인 ETF 제품군을 확장했습니다. 새로운 ETF는 iShares Core S&P 500 ETF (IVV)의 상승 가격 수익률을 약 두 배로 제공하는 것을 목표로 하며, 대략 5.82%의 한도까지 추적하며, 전체 결과 기간 동안 보유할 때 IVV의 하락 가격 수익률을 추적합니다.
결과 지향적인 ETF 시장은 지난 5년 동안 50억 달러에서 1,600억 달러 이상으로 크게 성장했습니다. TWOX는 블랙록의 첫 번째 가속된 수익 중심 전략으로, 투자자들이 완만한 성장 환경에서 향상된 수익률을 추구할 수 있도록 설계되었습니다. 이 ETF는 기초 ETF와 옵션을 결합하여 더 높은 수익 잠재력을 위한 '가속 지대'를 만듭니다.
이 펀드는 0.53% (총액) 및 0.50% (순액)의 경비 비율을 가지고 있으며, 2030년 11월까지 수수료 면제가 적용됩니다. 결과 기간은 분기마다 재설정되며, 이 기간 동안 한도가 시장 조건에 따라 조정됩니다.
BlackRock a lancé le iShares Large Cap Accelerated ETF (TWOX), élargissant sa gamme d'ETF orientés vers les résultats. Le nouvel ETF vise à fournir environ deux fois le rendement du prix à la hausse de l'iShares Core S&P 500 ETF (IVV), jusqu'à un plafond approximatif de 5,82%, tout en suivant le rendement du prix à la baisse de l'IVV lorsqu'il est détenu pendant toute une période de résultat.
Le marché des ETF orientés vers les résultats a connu une croissance significative, passant de 5 milliards à plus de 160 milliards de dollars au cours des cinq dernières années. TWOX représente la première stratégie de retour accéléré de BlackRock, conçue pour aider les investisseurs à rechercher des rendements améliorés dans un environnement de croissance modérée. L'ETF combine un ETF sous-jacent avec des options pour créer une 'zone d'accélération' pour un potentiel de rendement plus élevé.
Le fonds a un ratio de frais de 0,53% (brut) et de 0,50% (net), avec une exonération des frais en vigueur jusqu'en novembre 2030. La période de résultat se réinitialise chaque trimestre, au cours de laquelle le plafond sera ajusté en fonction des conditions du marché.
BlackRock hat den iShares Large Cap Accelerated ETF (TWOX) gestartet und damit sein Angebot an ergebnisorientierten ETFs erweitert. Der neue ETF zielt darauf ab, etwa das Doppelte der Aufwärtspreisergebnisse des iShares Core S&P 500 ETF (IVV) bis zu einer geschätzten Obergrenze von 5,82% bereitzustellen, während er die Abwärtspreisergebnisse von IVV während eines gesamten Ergebniszeitraums verfolgt.
Der Markt für ergebnisorientierte ETFs ist in den letzten fünf Jahren erheblich gewachsen, von 5 Milliarden auf über 160 Milliarden US-Dollar. TWOX stellt die erste auf beschleunigte Rendite ausgerichtete Strategie von BlackRock dar, die Anlegern helfen soll, in einem moderaten Wachstumsumfeld höhere Renditen anzustreben. Der ETF kombiniert einen zugrunde liegenden ETF mit Optionen, um eine 'Beschleunigungszone' für ein höheres Renditepotenzial zu schaffen.
Der Fonds hat einen Gesamtausgabenanteil von 0,53% (brutto) und 0,50% (netto), wobei eine Gebührenerlass bis November 2030 gilt. Der Ergebniszeitraum wird vierteljährlich zurückgesetzt, während dessen die Obergrenze gemäß den Marktbedingungen angepasst wird.
- First accelerated return-focused strategy in BlackRock's outcome-oriented ETF suite
- Offers potential for 2x upside price return up to the cap
- Lowest fees within the accelerated ETF category
- Quarterly reset periods provide flexibility and adaptability to market conditions
- Returns are capped at 5.82% for the first outcome period
- Performance tied to downside risk of S&P 500
- First outcome period is shorter than a full quarter
Insights
The launch of TWOX represents a strategic move in the rapidly evolving outcome-oriented ETF space. The product's 0.50% net expense ratio and 5.82% cap for the initial period position it competitively in the accelerated ETF category. The quarterly reset structure provides flexibility and regular opportunities for cap adjustments based on market conditions.
The mechanics of TWOX are particularly noteworthy - it offers 2x upside potential of the S&P 500 up to the cap while maintaining 1:1 downside exposure. This asymmetric risk-return profile makes it an attractive tool for investors anticipating moderate market growth. In simpler terms, think of it as a turbocharger for your S&P 500 returns - you get double the acceleration up to a certain speed limit (the cap), but standard braking power when things slow down.
The timing of this launch aligns with market expectations of moderate growth environments where traditional beta exposure might not suffice for return objectives. The product fills a important gap in BlackRock's outcome-oriented suite, complementing their existing protection-focused offerings.
The exponential growth of outcome-oriented ETFs from
The quarterly reset feature is a double-edged sword - while it provides more frequent opportunities to reset the cap based on market conditions, it also means investors must carefully time their entry and exit points to fully capture the intended outcome. The options-based structure effectively creates a "sweet spot" zone where returns are amplified, making this particularly appealing in range-bound or moderately bullish markets.
TWOX's launch represents BlackRock's strategic response to the growing demand for sophisticated investment solutions in ETF format. The product's structure offers an interesting alternative to direct options trading or leveraged ETFs, particularly suitable for investors seeking enhanced returns without taking on excessive risk. For the average investor, this means getting potentially higher returns in good times while maintaining normal market exposure in down times - all through a simple ETF wrapper.
The competitive expense ratio and potential for higher caps compared to peers could make this a preferred vehicle for tactical asset allocation. However, investors should understand that the effectiveness of this strategy heavily depends on market conditions and timing relative to the quarterly reset cycle. This is essentially a "smart beta plus" approach that could become increasingly relevant in a lower-return environment.
The iShares Large Cap Accelerated ETF (TWOX) aims to boost return potential up to an approximate cap of
Simplifies access to a sophisticated accelerated return strategy through the ETF wrapper
As the first accelerated return-focused strategy in the firm’s outcome-oriented ETF suite, TWOX is designed to help investors seek better returns in a moderate growth environment and offer a differentiated source of returns given its unique structure.
TWOX combines an underlying ETF with options to create an “acceleration zone” for higher return potential up to a certain point if held over the entire outcome period. This unique structure enables TWOX to seek to offer the highest caps and the lowest fees within the accelerated ETF category.
The new ETF employs an options strategy that seeks to provide investors approximately twice the upside price return (the accelerated return) of IVV up to an approximate cap, while aiming to approximately track the downside price return of IVV when held for an entire outcome period (a calendar quarter). Given the launch date of January 16, 2025, the first outcome period is shorter than a full quarter outcome period. The approximate cap for TWOX’s first outcome period is
As uncertainty associated with trade and international policy could lead to slower growth, TWOX offers investors a new tool for targeting enhanced return and clearer outcomes.
“A moderating market could be a hurdle for investors seeking attractive returns. As investors increasingly turn to precision tools to express their views on the equity market, they now have products ranging from protection to enhanced return to do so,” said Rachel Aguirre, Head of
Fund Name |
Ticker |
Expense Ratio* |
Cap At Launch |
iShares Large Cap Accelerated ETF |
TWOX |
|
|
*The gross expense ratio is
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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 over 1,500+ exchange-traded funds (ETFs) and
Carefully consider the Fund’s investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Fund’s 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.
There can be no guarantee that the Accelerated Funds will be successful in their investment strategy, and investors may lose some or all of their money. The outcomes are intended to be realized only by investors who hold Fund shares at the outset of the Outcome Period (as defined in the prospectus) and continue to hold the shares through the end of the Outcome Period. An investor who buys Fund shares after the start of an Outcome Period may experience lesser returns and may be exposed to greater losses than that of the Underlying ETF. An investor who sells Fund shares before the end of an Outcome Period may not fully realize the Accelerated Return. The Accelerated Funds do not provide a buffer, floor or other protection against losses experienced by the Underlying ETF. The Funds are subject to an Approximate Cap (the “Cap”), whose level depends on prevailing market conditions at the time the Cap is set at the beginning of the Outcome Period and may vary, sometimes significantly, from one Outcome Period to the next. The Accelerated Funds will not participate in gains of the Underlying ETF that are above the Cap.
Accelerated ETFs invest in FLEX Options that reference the Underlying ETF. FLEX Options are subject to counterparty risk, which is the risk that the other party in the transaction will not fulfill its contractual obligation, and they may be less liquid than other instruments. The value of FLEX Options may be affected by interest rate changes, dividends, actual and implied volatility levels of the Underlying ETF’s share price, and the remaining time until the FLEX Options expire. Because of these factors, the Funds' NAV may not increase or decrease at the same rate as the Underlying ETF’s share price.
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.
Actively managed funds do not seek to replicate the performance of a specified index, may have higher portfolio turnover, and may charge higher fees than index funds due to increased trading and research expenses.
The strategies discussed are strictly for illustrative and educational purposes and are not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. There is no guarantee that any strategies discussed will be effective. The information presented does not take into consideration commissions, tax implications, or other transactions costs, which may significantly affect the economic consequences of a given strategy or investment decision.
The iShares Funds are not sponsored, endorsed, issued, sold or promoted by S&P Dow Jones Indices LLC, New York Stock Exchange LLC (NYSE) or Cboe Global Markets, Inc. (Cboe), which do not make any representation regarding the advisability of investing in the Funds.
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Source: BlackRock, Morningstar, as of 12/30/2024. |
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Media
Joanna Yau
Joanna.yau@blackrock.com
646.856.7274
Source: BlackRock
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