BlackRock to list its first active ETF in Australia

BlackRock Australia is set to launch its first local active ETF, bringing a US equities strategy.

The iShares US Factor Rotation Active ETF (ASX: IACT), expected to list on the ASX in mid-June, is priced at 0.45%.

It aims to outperform the broad US equity market based on six factors: value, quality, momentum, size, growth, and minimum volatility, with a "bottom-up, data driven stock selection approach."

This should reduce short-term cyclical volatility and deliver outperformance relative to the broader market over time, BlackRock explained.

BlackRock iShares ETF specialist Tamara Haban-Beer Stats said the launch is timely as US equities remain a core allocation for many Australian investors.

"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," Stats said.

Additionally, IACT is built on its US counterpart DYNF, which has achieved a 10.8% return over the past year and a 19.4% annualised return over five years to March end. It has some US$17.4 billion in assets under management.

BlackRock head of investments for enhanced factors Philip Hodges, who is also the portfolio manager of DYNF, explained the new ETF draws on BlackRock's extensive 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," Hodges said.

"This gives investors an accessible way to navigate shifting market conditions while aiming to deliver consistent outperformance over time.

"We're excited to launch BlackRock's first active ETF in the Australian market."

The new launch follows BlackRock recently acquiring a minority stake in Generation Development Group.