BlackRock Expands Active ETF Suite with BBB-B CLO ETF
BlackRock has launched the iShares BBB-B CLO Active ETF (Nasdaq: BCLO), expanding its active ETF platform. The new fund focuses on investing in CLOs rated BBB+ to B-, aiming to provide capital preservation and current income. BCLO is managed by BlackRock's CLO investment team, which oversees over $30 billion in assets globally.
The ETF comes with a total expense ratio of 0.45% and will be benchmarked against the JP Morgan CLO High Quality Mezzanine Index. The launch aligns with BlackRock's projection that global active ETF assets under management will reach $4 trillion by 2030. The company currently manages $37 billion across over 40 active ETFs in the U.S.
BlackRock ha lanciato l'iShares BBB-B CLO Active ETF (Nasdaq: BCLO), ampliando la sua piattaforma di ETF attivi. Il nuovo fondo si concentra sull'investimento in CLO con un rating compreso tra BBB+ e B-, con l'obiettivo di garantire la preservazione del capitale e un reddito attuale. BCLO è gestito dal team di investimento CLO di BlackRock, che supervisiona oltre 30 miliardi di dollari in attivi a livello globale.
L'ETF presenta un costo totale dell'1,45% e sarà confrontato con il JP Morgan CLO High Quality Mezzanine Index. Il lancio è in linea con la proiezione di BlackRock secondo cui gli attivi globali degli ETF attivi sotto gestione raggiungeranno 4 trilioni di dollari entro il 2030. Attualmente, l'azienda gestisce 37 miliardi di dollari in oltre 40 ETF attivi negli Stati Uniti.
BlackRock ha lanzado el iShares BBB-B CLO Active ETF (Nasdaq: BCLO), ampliando su plataforma de ETF activos. El nuevo fondo se centra en invertir en CLOs calificados entre BBB+ y B-, con el objetivo de proporcionar preservación de capital e ingresos actuales. BCLO es gestionado por el equipo de inversión CLO de BlackRock, que supervisa más de 30 mil millones de dólares en activos a nivel mundial.
El ETF tiene una ratio de gastos total del 0.45% y se comparará con el índice JP Morgan CLO High Quality Mezzanine. El lanzamiento se alinea con la proyección de BlackRock de que los activos de ETF activos bajo gestión global alcanzarán los 4 billones de dólares para 2030. Actualmente, la empresa gestiona 37 mil millones de dólares en más de 40 ETFs activos en EE.UU.
블랙록이 iShares BBB-B CLO Active ETF (Nasdaq: BCLO)를 출시하며, 능동형 ETF 플랫폼을 확장했습니다. 새로운 펀드는 BBB+에서 B-로 평가된 CLO에 투자하는 데 중점을 두어 자본 보존과 현재 수익을 제공합니다. BCLO는 블랙록의 CLO 투자 팀이 관리하며, 전 세계적으로 300억 달러 이상의 자산을 감독하고 있습니다.
이 ETF는 총 경비 비율이 0.45%이며, JP 모건 CLO 고품질 메자닌 지수를 기준으로 삼을 것입니다. 이번 출시는 블랙록의 전망과 일치하며, 2030년까지 전 세계 능동형 ETF의 운용 자산이 4조 달러에 이를 것으로 예상하고 있습니다. 현재 이 회사는 미국 내에서 400억 달러 이상의 40개 이상의 능동형 ETF를 관리하고 있습니다.
BlackRock a lancé le iShares BBB-B CLO Active ETF (Nasdaq: BCLO), élargissant ainsi sa plateforme d'ETF actifs. Le nouveau fonds se concentre sur l'investissement dans des CLO notés BBB+ à B-, avec pour objectif de préserver le capital et de générer un revenu courant. BCLO est géré par l'équipe d'investissement CLO de BlackRock, qui supervise plus de 30 milliards de dollars d'actifs à l'échelle mondiale.
L'ETF a un ratio des dépenses total de 0,45 % et sera comparé à l'indice JP Morgan CLO High Quality Mezzanine. Ce lancement s'aligne avec la prévision de BlackRock selon laquelle les actifs mondiaux des ETF actifs sous gestion atteindront 4 trillions de dollars d'ici 2030. Actuellement, l'entreprise gère 37 milliards de dollars dans plus de 40 ETF actifs aux États-Unis.
BlackRock hat den iShares BBB-B CLO Active ETF (Nasdaq: BCLO) gestartet, um seine aktive ETF-Plattform zu erweitern. Der neue Fonds konzentriert sich auf Investitionen in CLOs mit einer Bewertung von BBB+ bis B- und zielt darauf ab, Kapitalerhalt und laufende Einkünfte zu bieten. BCLO wird vom CLO-Investmentteam von BlackRock verwaltet, das weltweit über 30 Milliarden Dollar an Vermögenswerten betreut.
Der ETF hat eine Gesamtkostenquote von 0,45 % und wird mit dem JP Morgan CLO High Quality Mezzanine Index verglichen. Der Start steht im Einklang mit BlackRocks Prognose, dass die globalen aktiven ETF-Vermögenswerte bis 2030 4 Billionen Dollar erreichen werden. Das Unternehmen verwaltet derzeit 37 Milliarden Dollar in über 40 aktiven ETFs in den USA.
- Launch of new ETF product expanding market reach
- Management of substantial $30 billion in CLO assets globally
- Lower expense ratio of 0.45% for the new ETF
- $37 billion in active ETF assets under management
- None.
Insights
The launch of BCLO marks a strategic expansion of BlackRock's $37 billion active ETF business, specifically targeting the high-yield structured credit market. This move is particularly well-timed as investors seek enhanced yield opportunities in a complex fixed income environment.
The BBB-B rated CLO segment represents the sweet spot in the capital structure, offering potentially attractive risk-adjusted returns compared to similarly rated corporate bonds. These mezzanine tranches typically provide 200-300 basis points of additional yield over AAA tranches, while benefiting from structural protections and diversification across hundreds of underlying corporate loans.
The product launch aligns with BlackRock's broader strategy to capitalize on the projected $4 trillion active ETF market by 2030. This represents a significant revenue opportunity, as active management fees are typically 3-4x higher than passive products. With a competitive 0.45% expense ratio, BCLO could generate substantial fee income given the growing advisor demand for fixed income active ETFs in model portfolios.
The timing is particularly strategic as structured credit markets have shown resilience despite broader market volatility. BlackRock's established $30 billion CLO platform provides important economies of scale and information advantages in security selection, potentially enabling alpha generation in this inefficient market segment.
For investors, BCLO offers several compelling features:
- Professional management of complex credit instruments
- Enhanced liquidity through the ETF structure
- Potential for higher yields than traditional fixed income
- Portfolio diversification benefits due to lower correlation with conventional bonds
This product launch strengthens BlackRock's position in the rapidly evolving active ETF landscape. The firm is strategically expanding its structured credit offerings at a time when advisor demand for alternative fixed income solutions is accelerating. The $4 trillion projected market size by 2030 represents a compound annual growth rate of over 26%, indicating substantial revenue potential for early movers.
BlackRock's established distribution networks and $37 billion active ETF platform provide significant competitive advantages in gathering assets. The firm's ability to leverage its institutional CLO expertise into a retail-accessible format demonstrates the evolution of ETF democratization, potentially creating barriers to entry for competitors lacking similar scale or expertise.
The focus on BBB-B rated CLOs is particularly noteworthy as it targets a market segment where active management can add significant value through credit selection and risk management. This positioning could help capture a larger share of the growing model portfolio market, where fixed income active ETFs are increasingly prevalent.
For BLK shareholders, this launch represents another step in diversifying revenue streams and maintaining the firm's leadership in ETF innovation. The higher fee structure of active products (0.45% for BCLO) compared to passive alternatives could contribute meaningfully to profitability as assets scale.
The new fund aims to increase investor access to harder-to-reach fixed income sectors
“CLOs present one of the most compelling opportunities in fixed income today, offering lower correlation to traditional fixed income assets and the potential for higher yields,” said Saffet Ozbalci, Global Head of Structured Credit at BlackRock. “In the convenience of an ETF, BCLO aims to generate income and capture alpha opportunities, driven by the wide dispersion across CLOs.”
BCLO aims to deliver capital preservation and current income by investing primarily in a portfolio composed of CLOs rated from BBB+ to B-. The Fund is managed by BlackRock’s dedicated CLO investment team that manages over
Fund Name |
Ticker |
Portfolio Managers |
Total Expense Ratio |
Benchmark |
iShares BBB-B CLO Active ETF |
BCLO |
Saffet Ozbalci, Jason Choi, Nidhi Patel |
|
JP Morgan CLO High Quality Mezzanine Index |
Furthers BlackRock’s commitment to active ETFs
BlackRock projects that global active ETF assets under management will surge to
Advisors are continuing to use active ETFs as building blocks in model portfolios, with fixed income ETFs making up the largest segment of active ETF model usage.4 In addition, active ETFs can help 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.
“Active ETFs have earned a place in portfolios by offering investors a broader range of strategies and differentiated returns through the convenience of the ETF wrapper,” said Steve Laipply, Global Co-Head of iShares Fixed Income ETFs for BlackRock. “By providing access to BBB-B rated CLOs, BCLO can help investors modulate credit quality and income profiles based on the evolving macro environment.”
BlackRock manages
About BlackRock
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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 1500+ exchange traded funds (ETFs) and
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.
While the iShares BBB-B CLO Active ETF (the “Fund”) will invest primarily in CLO tranches that are rated BBB -B, such ratings do not constitute a guarantee of credit quality and may be downgraded. In stressed market conditions, it is possible that even senior CLO debt tranches could experience losses due to actual or perceived defaults, and rating downgrades and forced liquidations of underlying collateral. CLO securities may be less liquid than other types of securities and there is no guarantee that an active secondary market will exist or be maintained. The CLO securities in which the Fund invests are managed by investment advisers independent of BlackRock Fund Advisors, the Fund’s investment manager, and an affiliate of BlackRock Investments, LLC. Any adverse developments with respect to the CLO manager may adversely impact the CLO securities held within the Fund.
The Fund is actively managed and does not seek to replicate the performance of a specified index. The Fund may have a higher portfolio turnover than funds that seek to replicate the performance of an index.
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.
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
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”).
©2025 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: BlackRock, as of December 31, 2024
2 Source: BlackRock, as of January 23, 2025.
3 Source: BlackRock, as of March 31, 2024. Estimates are for global figures and include 2027 and 2030 scenario calculations based on proprietary research by BlackRock Global Product Solutions. Subject to change. The figures are for illustrative purposes only and there is no guarantee the projections will come to pass
4 Based on the number of model providers that use active fixed income ETFs (49) vs. the number that use active equity ETFs (38) in the Morningstar Categories Conservative Allocation, Moderately Conservative Allocation, Moderate Allocation, Moderately Aggressive Allocation, and Aggressive Allocation as of June 30, 2024.
5 BlackRock, as of January 23, 2025.
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Media Contacts
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929-348-0152
Catherine Sperl
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631-951-1599
Source: BlackRock
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