BlackRock Expands Active ETF Suite With Equity Premium Income Strategy
- BlackRock Advantage Large Cap Income ETF offers high income potential and long-term market appreciation
- BALI combines dividend-paying stocks and option premiums to generate income
- None.
Providing investors a differentiated income strategy which couples high income potential with long term growth
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,
“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
Managed by a portfolio team led by Raffaele Savi, Global Head of BlackRock Systematic and Co-CIO and Co-Head of Systematic Active Equity,
“As investors seek new solutions to achieve clearer outcomes in their portfolio,
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.
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
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
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.
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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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Media
Joanna Yau
joanna.yau@blackrock.com
646-310-1116
Jenna Merchant
jenna.merchant @blackrock.com
646-231-1866
Source: BlackRock
