BlackRock to launch debut active ETF in Australia
BlackRock Australia has confirmed its intentions to launch the iShares US Factor Rotation Active ETF (IACT), with listing on the ASX expected in mid-June.
The asset manager has a suite of 52 passive ETFs in Australia, meaning this incoming product would be its first actively managed ETF.
According to BlackRock, IACT offers a “lower-cost entry point” to an actively managed US equities strategy in comparison to other active offerings currently available in the market, with annual fees of 0.45 per cent.
The investment vehicle aims to outperform the broad US equity market by tactically allocating across six economic drivers of returns: value, quality, momentum, size, growth, and minimum volatility – based on evolving market conditions.
Managed by BlackRock’s global systematic active equity investment team, IACT takes a bottom-up, data-driven approach to stock selection.
Namely, the portfolio is actively managed to favour stocks demonstrating these return characteristics, ultimately seeking to reduce short-term cyclical volatility and deliver outperformance relative to the broader market over time.
Commenting on the launch, BlackRock’s head of investments for enhanced factors, Philip Hodges, said: “Drawing on our 40 years of systematic investment experience, IACT showcases the power of combining deep research, real-time data, and machine learning with BlackRock’s active management expertise – now delivered in a convenient, cost-effective ETF wrapper.
“This gives investors an accessible way to navigate shifting market conditions while aiming to deliver consistent outperformance over time.”
Tamara Haban-Beer Stats, iShares ETF specialist at BlackRock, said US equities remain a core allocation for many financial advisers and investors in Australia, bolstered by the strength of US corporates and structural themes including artificial intelligence.
“IACT offers a differentiated source of return across market cycles for Australian investors seeking a long-term holding that provides access to an active US equity strategy – at a lower cost than other active equity options available in Australia,” she explained.
The upcoming ETF comes off the back of its US counterpart of the same name, DYNF. The US-domiciled product is also managed by BlackRock’s global systematic active equity team and has some US$17.4 billion ($27.1 billion) in assets under management, as of 27 May 2025.
DYNF has delivered a 10.8 per cent return over the past year and a 19.4 per cent annualised return over five years, outperforming its benchmark (the MSCI USA Index) and the active large blend category average.
AUTHOR
Jasmine Siljic
Recommended for you
Regal Partners has passed $20 billion in funds under management, helped by $723 million in net inflows during the last three months.
Global investment manager Fidante has formed a strategic partnership with a London-based asset manager to secure exclusive distribution rights across the APAC region.
Blackwattle Investment Partners has hired a management trio from First Sentier Investors – who departed amid the closure of four investment teams last year – to run its first equity income offering.
Private markets manager Fortitude Investment Partners has launched an evergreen small-cap private equity fund.
